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B-146874 1 (1972-09-13)

handle is hein.gao/gaobaaeiw0001 and id is 1 raw text is: ~fy7Ly9/ ¥ COMPTROLLER GENERAL'S REPORT TO THE CONGRESS DIGEST NEED TO IMPROVE ACCURACY OF Vs-0 AIR FORCE REQUIREMENTS SYSTEM FOR REPARABLE PARTS Department of the Air Force B-146874 U0091327 WHY THE REVIEW WAS MADE The Department of the Air Force has a highly complex system for determining, by comp.uter, requirementtso reparable parts. The system furnishes 'data -on _about 150,000 items, consisting primarily of aeronautical parts. The inventory of these items is valued at $7.1 billion. Procurements and re- pair programs for these items in fiscal year 1970 exceeded $900 million. The Air Force makes d-isions to buy, repair, retain, or dispose of rep- arable parts on the basis fffatTro6vided by this requirements sysfE-m. ATfda-ta -from 'this system ai r euse dto support requests' for fundsfr6-m the Congress. The General Accounting Office (GAO) undertook the review to ascertain whether the system provided management with reliable information. FINDINGS AND CONCLUSIONS Errors in several key data elements in this system were widespread. Be- cause of the extent of error, questions were raised as to whether management was getting reliable information for making decisions to buy, repair, retain, or dispose of reparable parts. GAO's review of requirements computations for 110 items selected on a statistical-sampling basis showed that errors had caused inaccurate re- quirements in about 59 percent of the computations. Requirements for some items were misstated by $2.5 million, and availability of assets were misstated by $2.2 million.. GAO, using statistical-sampling techniques, estimates that, of the 73,000 computations for items showing requirements such as a need to buy or re- pair, about 43,000 were inaccurate. GAO could not estimate, with any degree of accuracy, the total dollar effect of these inaccurate require- ments. However, the extent of errors and the amount of funds involved for the items sampled indicated that substantial amounts could be involved. Causes for errors in the system follow. --Data are not checked for accuracy before they are used due to man- agers' heavy workloads. SEPT. 13,21972 IX Tear Sheet

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