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PLRD-81-12 1 (1981-03-26)

handle is hein.gao/gaobabbrj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20546 PROCUREMENT. LOGISTICS, MARCH 26,1981 AND READINESS DIVISION B-201670 The Honorable John 0. Marsh, Jr. The Secretary of the Army 114726 Dear Mr. Secretary: Subject: Management Attention Is Needed To Identify easons for High Volume of Serviceable Material Returns to Depots (PLRD-81-12) We have completed our review of the Department of the Army's management of field returns of serviceable material to Army depots. We found that the Army does not identify the causes for field returns of serviceable excess material. As a result the Army does not have the means to determine appropriate corrective actions. We started this review because, while reviewing other Army supply activities, we noted that returns of serviceable material from field units were unusually high. Since an earlier Army study had disclosed that about 30 percent of all material requisitioned by Army field units is subsequently returned to depots, we were concerned about the impact of this on depot workload and transportation costs. To determine the impact on depot operations, we obtained information from the Depot Systems Command and one major depot in Pennsylvania. To identify the reasons for returns, we obtained data from supply activities at the Army Training Center at Fort Dix, New Jersey. We also visited related Army headquarters command elements. ,The U.S. Army Materiel Development and Readiness Command (DARCOM), the Army's wholesale inventory manager, has five sub- ordinate commands. The subordinate commands,: commonly called inventory control points (ICPs), are responsible for the pro- curement, storage, issuance, and disposal of material. They respond to material requisitions from the retail user level. At this level, the Army's 40 installations, 16 combat divi-j sions, and 5 corps support commands are authorized stockage of $833 million of inventories. (943080)

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