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DOCUMENT RESUME
01121 [ CA0751337]
[Procedures and Practices Used by Army and Navy Inventory
Managers and Their Shipping Activities to Respond to Requests
for Cancellation of Requisitions for Materiel]. LCD-77-201;
B-162152. February 17, 1977. 12 pp.
Report to Secretary, Department of Defense; by Rcbert G.
Rothwell (for Fred J. Shafer, Director, Logistics and
Communications Div.).
Issue Area: Facilities and Material Management: Bequirements for
Equipment, Spare Parts and Supplies (702).
Contact: Lcgistics and Communications Div.
Budget Function! National Defense. Department of Defense -
Military (except procurement & contracts) (051); National
Defense: Department of Defense - Procurement & Contracts
(058).
Organization Concerned: Department of the Navy: Aviation Supply
Office, Philadelphia, PA; Department of the Army: Army
Tank-Automotive Comnand, Detroit, MI; Department of the
Army: Army Aviation Systems Command.
Congressional Relevance: House Committee on Armed Services;
Senate Committee on Armed Services.
The Navy, haviag responded to earlier GAO
recommendations, has implemented an automatic data processing
system which has saved an estimated $44 million in procurement
and transpcrtation costs between July 1974 and March 1976 by
identifying and canceling unfilled orders for materiel wlich the
requisitioners no lcnger needed. Findings/Conclusions: Unlike
,the Navy system, the Army's automated logistic systems only
provide for demand removal on the basis of confirmed requisition
cancellatious. The Arav could benefit by adcpting the Navy's
system for automatic removal of invalid dena.nds. A&my and Navy
inventory control points are required to cancel direct delirary
back orders if procnrement action has not been started when the
request is cancelled, but action should be taken only for
cancellation oi ateriel valued at more than $50, if procureitent
has been started. This practice has not been followed. The
cancellation of requisitions has not been quickly processed and
has cost millions of dollars. rany unnecessary procurements and
shipment-, have occurred because of weakness in the system. The
Navy's coitrols are inadequate to prevent duplicate filling of
direct de.'ivery of back orders. Pecomsm:ndations: The Army
should provide for automated removal of invalid recurring past
demands frci requirement computation data bases; require monthly
use of speciil detection programs for unprocessed cancellatioi,
requests and %rompt action on unprocessed cancellation requests;
and require compliance with DOD criteria for cancellatiop of
procurement or diversion of shipment. The Navy should establish
automated controls to prevent duplicate filling cf back orders.
Uniform tine standards and management controls fcr processing](ViewImageLocal?handle=hein.gao/gaobaacar0001&div=1&collection=&method=preview&ext=.png&size=3)