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LCD-80-70 1 (1980-06-17)

handle is hein.gao/gaobabard0001 and id is 1 raw text is: 



BY HE US, GENERAL ACCOUNTING OFF-IE




Report To The Secretary Of Defense






Navy Has Opportunities To Reduce

Ship Overhaul Costs





The Navy can save several million dollars annu-
ally in ship overhaul costs by using the com-
ponent remove-and-replace concept. Under
this concept, damaged parts are removed and
sent to an overhaul point for future repair
or scrapped. This permits components to be
processed economically in batches and avoids
unnecessary repair costs for items that are
available in the supply system.

This report shows also that one shipyard had
$11 million of excess material onhand and/or
due in, while the supply system was buying
and/or repairing $5.3 million of the same
material.

GAO makes several recommendations to cor-
rect the problem.









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               0 .LCD-80-70

                                                                  JUNE 17, 1980

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