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DOCUMENT RESUhE
04684 - (B0064949]
Automctive Tire Distribution: Dollars Can Be Saved. LCD-77-235;
3-159200. January 4, 1978. 4 pp.
Report to Secretary, Department of Defenze; by Rcbert G.
Rothvell (fcr Fred J. Shafer, Director, Logistics and
Communications Div.).
Issue Area: Facilities and Material Management (700).
Contact: Logistics and Communications Div.
Budget Function: National Defense: itpartment of -cfense -
Military (except procurement & contracts) (051).
Oroanization Concerned: General Services Administration;
Deraztment of the Army: Army Tank-Automotive Materiel
Readiness Command, Warren# HI.
Congressional Rel.aevance: House Committee cn Armed Services;
Senate Committee cn Armed Servicqs.
The Government operates a fleet of more than 420,000
commercial passenger cars and trucks ard spends cver $29 3illion
each year fcr about 716,p00 new replacement tires. Because 'ires
represent a significant part of -he miilions spent to operate
and mai.ntain these vehicles, an exam'-nation was conducted of the
Department of Defenseas (DOD's) and the General Services
Administration's (GSA's) tire management policies and practices
relating to the storage and distribution of new tires.
Findings/Conclusions: DOD's central management and distribution
of automotive tires has been plagued with problems, including
high operating costs and slow response to customer needs.
Although currcnt DOD policy encourages military users to reduce
operation and support costs by buyin-i more ccmmercially
available items and using commercial distribution networks,
military activities are still required to use the DOD system for
tires centrally managed and distributeo through the supply
depots. The DOD systvm of purchasing and centrally stocking and
distributing tires that are available commercially on the open
market is no longer cost effective and should be dqcoutinued.
DOD~s requirements for commercial tires can be met _hro-.gh GSA's
Federal Supply Schedule System and direct local purchase at less
cost to the Government and quicker response to customer neels.
Recommendations: DOD should discontinue stocking tires that are
availatle ccmmercially in order to reduce the high cost of
distributing tirps, prcv ,de more timely services, and comply
with the policy if generally using commercial supply sources.
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