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LCD-78-421 1 (1978-07-25)

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DOCUMENT R~ESUME


06480 - [B20871021

Essentiality of Air Force War Pserve Items. LCD-78-421;
B-133390. July 25, 1978. 26 pp. + 4 epipendices (4 pp.).

Report to Sen. John C. Stennis, Chairman, Senate CCmmittee on
Appropriations: Defense Subcommittee; by Elmer B. Staats,
Comptroller General.

Issue Area: Balance of War Reserves, Prepositicned Stocks, aid
     the Industrial Base. (806).
Contact: Loqistics and Communications Div.
Budqet Function: National Dqfense: Department c Defense -
     Military (except procurement & ccntracts) (051).
 Orqanization Concerned: Department of Defense; Department of the
     Air Force.
 Conqreszional RelevLnce: House Committee on Arved Services;
     Senate Committee on Armed ServiciE. Sen. John C. Stennis.
 Authority: S. Rept. 95-325.

          In fiscal year 197e, the Air Fcrce estimated its
 reacetime requirements for reparable (or investment-type)
 aircraft spare parts at $586 million and its war reserve
 requirement at about $i billion. Congressicnal committees have
 continually questioned the basis for and validity cf the
 Department of Defense's war reserve requirements for spare and
 repair parts. A rfeview was conducted of 199 randomly selected
 aircraft spares -nd repair parts having a war reserve
 requirement as of June 30, 1977, which the Air Force planned to
 buy, to determine if the buy requirement was valid, the items
 were critical to wartime missions, items supported the more
 important weapons systems, and items with tie greatest critical
 deficiencies were given funding priorities.
 iindinqs/Conclusions: AL erroneous requirement of more than $1
 million to support a weapons system that was ineligible for that
 type of support was qenerated because invalid factors were not
 deleted from the requirements computation system. Between 194
 and 533 of the 2,423 war reserve investment items managed by
 Warner Rolbihs Air Loqistics Center had an invalid requirement.
 Essentiality desiqnations were incorrect for 13 of the items
 sampled. The Air Force's documentation used to justify its
 essential spare part needs is inccmlete and Lased on erroneo's
 data which causes annual. budget submissions to te cverstated.
 The Air Force does not have an effective ae',.od of assigning
 priorities to war reserve items in terms of their iuportance to
 warti e missions. Deficiencies in investment and stcck fund
 items occurred because: data are not checked for accuracy before
 beinq used; heavy workloads make checking data difficult; good
 sources are not :eadily available for scme data needed,
 personnel are not thorouqhly trained in system operations; and
 policies and procedures are unclear. Recomaendations: he
 secretary of the Air Force should: make sure that the neb system
can adequateiy establish priorities for war reserve items before

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