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PLRD-81-36 1 (1981-06-09)

handle is hein.gao/gaobabbzt0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT, LOGISTICS. AND READINESS DIVISION B-200353 JUNE 9, 1981 The Honorable John F. Lehman The Secretary of the Navy 115426111 115426 Dear Mr. Secretary: Subject: [Te Navy Is Not Adequately Protecting the Government's Investment in Materials Furnished to Contractors for Ship Construction and Repa (PLRD-81-36) The Navy provides billions of dollars of Government-furnished materials (GFM) to contractors for use in constructing, over- hauling, and repairing Navy ships. However, the Navy does not know how much GFM is in its contractors' possession because there are no overall financial or other management systems to account for these materials. No person or office is either responsible or accountable for overall protection of the Government's investment in those GFM the Navy provides contractors. Responsibility for monitoring these materials is highly fragmented among Naval Sea Systems Command (NAVSEA) activities in Washington, D.C., and local Supervisors of Shipbuilding, Conver- sion, and Repair (SUPSHIPs) located throughout the United States. Moreover, NAVSEA's focal point for SUPSHIP operations has not ensured that SUPSHIPs carry out their responsibilities for man- aging GFM in accordance with the Defense Acquisition Regulations (DAR) 1/ and other Defense and Navy policies and regulations. Of four SUPSHIPs we visited, no two were carrying out the basic regulations and instructions for GFM management in the same manner. As a result, SUPSHIP management of GFM varied widely in effectiveness. For example: --SUPSHIP-Seattle was effectively managing GFM by (1) ensuring that contractors complied with DAR and (2) using a computerized monitoring system. We found no significant deficiencies in GFM management by Seattle's contractors. 1/Formerly the Armed Services Procurement Regulations. (943081) r~i ...... .. ,,' , .....

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