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B-157535 1 (1971-10-04)

handle is hein.gao/gaobaaffe0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUI WASHINGTON, D.C. 20! DEFENSE DIVISION B-157535 LM095509 Dear Mr. Secretary: We have recently completed a review of the .prpcurement of ammunition components to determine whether significant amounts 6ofde-ct'ive items-were being accepted from suppliers. The Army Ammunition Procurement and Supply Agency, Jo- . liet, Illinois, is the Defense Department's major ammunition procurement activity. This agency purchases ammunition com- ponents and parts and furnishes them to Government-owned, contractor-operated (GOCO) plants for assembly into ammunition items. The parts and components furnished are generally in- spected and accepted at the manufacturers' plants prior to shipment. In accordance with provisions of the Armed Services Procurement Regulation, such inspection and acceptance is con- clusive except for latent defects, fraud, or such gross mis- takes as amount to fraud. Our review was performed at five of the 24 currently ac- tive Government-owned, contractor-operated Army ammunition plants, the Army Ammunition Procurement and Supply Agency, Defense Contract Administration Services offices, and selected plants furnishing parts and components. We found that the five plants received $1.8 billion worth of Government-furnished material during a 1-year period. The ammunition plants, however, could not readily furnish statis- tics showing the amount of this material that was found to be defective. We reviewed 15 items having a value of $96.3 million and found that $8.8 million, or 9.2 percent, was reported as de- fective. These materials were acquired from contractors or other GOCO plants, hereinafter referred to as vendors. We selected seven of the items for more detailed examination and found that the Government had incurred $3 million in addi- tional costs due to defective material. The costs involved were as follows: BEST DOCUMENT AVAILABLE 50TH ANNIVERSARY 1921-1971

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