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B-152598 1 (1973-01-12)

handle is hein.gao/gaobaafop0001 and id is 1 raw text is: f SUNITED STATES GENERAL ACCOUNTING OFFICE 0OFFICE ou WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS 7 DIVISION J 12 1973 B-152598 Dear Mr. Secretary: We reviewed the a~ taj~~fecota4 o logiStic..support of the Kwajalein Missile Range and submitted draf-t o.rro to you and to the contrac'tf- on June 22, 1972, for review and comments. The Department of . J the Army and the contractor subsequently advised us of actions taken or planned to improve range management. The more significant matters found during our review, our proposals for improving management, and the Army's and the contractor's corrective actions are summarized below. BACKGROUND Logistic support of the Kwajalein Missile Range, located in the Marshall Islands, costs the Government about $25 mil- lion a year under a cost-plus-awa.d/incentive--fee -coan,,act administered by the U.S. Army Safeguard System Command and its representatives at the range. IMPROVEMENT OF SUPPLY OPERATIONS The supply inventory consisted of about 57,000 line items valued at about $4.6 million. The contractor had been responsive to the supply needs of the Kwajalein Missile Range but certain sqlRl,, ,rpq, ps$and practices ,were inefficient and uneconomical. We proposed that the Army direct the contr t~ to --reduce inventory levels, --restrict noncritical items in inventory to only those supported by actual demand or realistic estimates of future use and to dispose of those items not meeting these criteria, --improve the accuracy of records, and --use lower-cost Government supply sources instead of commercial sources as much as possible. 1G4W7Fo680'

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