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PLRD-81-17 1 (1981-04-21)

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                   UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548


PROCUREMENT, LOGISTICS,
AND READINESS DIVISION


B-202308                                            APRIL 21, 1981



The Honorable John F. Lehman
The Secretary of the Navy                              II I  i

Dear Mr. Secretary;                                       114979

     Subject: 4anagement of Repairable Spare Aircraft
               Components Needs To Be Improved (PLRD-81-17)

     We have reviewed the Navy's management of repairable spare
aircraft components, including operational support inventory
items and rotatable pool items. Although the management of
these components has been the subject of past reviews, serious
weaknesses still exist.

     Much of the operational stock inventory material is
excess to authorized allowances, and many of the allowances
are higher than can be justified based on demand. At one
air station, this excess totaled $9 million. These problems
exist in spite of the fact that much of the material is managed
under the Closed Loop Aeronautical Management Program (CLAMP),
a program of intensified management for critical mission
essential repairable components. Neither the Aviation Supply
Office (ASO) nor the responsible base supply activities have
kept accurate records of the rotatable spare material at the
naval air rework facilities.

     In order to properly manage repairable components and to
achieve optimum use of available spares funding, allowances
should be established and periodically adjusted to reflect
experienced or projected demand. Material excess to activities'
needs should be released to the supply system for redistribu-
tion and action should be taken to improve visibility over
rotatable pool items.

BACKGROUND

     Prior to 1977, rotatable pools of spare repairable com-
ponents were authorized to support aircraft maintenance at both
the depot level and the organizational and intermediate level.
Pool items at the depot level were recorded on station supply



                                                        (943082)


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