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LCD-76-237 1 (1977-06-07)

handle is hein.gao/gaobaackd0001 and id is 1 raw text is: 



DOCUMENT RESUNE


02617 - [A1672683]

Submarine Supply Support Costs Can Be Greatly Reduced without
Impairing Readiness. LCD-76-237; B-133058. June 7, 1977. 42 pp.
Report to the Con.ress; by Elmer B. Staats, Comptroller General.

Issue Area: Facilities and Material Managoment (700).
Contact: Logistics and Communications Div.
Budget Function: National Defense: Department of Defense
    Military (except procurement & contracts) (051).
Organization Concerned: Department of the Navy.
Congressional Relevance: Congress.

         The Navy overinvests tens of millions of dollars yearly
in inventories of repair parts for its 106 niclear submarines
because of weaknesses in establishing and maintaining inventory
levels on board submarines and tenders. Findings/Conclusions:
Over a 5-year period, the Navy can save as much as $106.9
million in future investments in supplies for submarines and
tenders. This can be done while still keeping the submarines ani
tenders ready for combat. The accuracy of usage data needs to be
improved and more realistic safety levels and order-ship times
could be used in computing stock requirements. Subma-ine tenders
can cancel and redistribute millions of dollars of excess ntock
each year by improving policies and practices. Recommend-tions:
The Secretary of Defense should direct the Navy to eliminate
initial estimates of parts needed when updating replacement
rates and rely more on the last 2 years' data if the rates are
not updated annually; require submarine tenders based in the
continental United States to adopt a more stringent usage
criterion for es' blishing and retaining stock levels; require a
number    deployt, submarines and tenders to test this more
stringei,. criterion for 1 year under operating conditions; and
change its policy so that submarine tenders will limit incraases
in stock levels to quantities needed for current operations.
(Author/SC)

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