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PLRD-82-34 1 (1982-01-22)

handle is hein.gao/gaobabmri0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE1 WASHINGTON, D.C. 20548 JAN 22 1902 pROC M MENT. LOGISTICS. AN CADINESS DIVISION B-205920 - --. Vice Admiral E. A. Grinstead, SC, USN ~ K11111111 Director, Defense Logistics Agency 119801 Dear Admiral Grinstead: Subject: DLA's Efforts to Identify and Correct Causes of Delinquent Deliveries (PLRD-82-34) This report summarizes the results of our review of delinquent procurement deliveries to Defense Logistics Agency's (DLA) supply centers. We limited our review primarily to the hardware supply centers' use of the Standard Automated Materiel Management System (SAMMS) in managing deliveries and dealing with delinquencies. We performed our work in DLA headquarter's contracting, supply, and other offices and visited Defense Construction Supply Center, De- fense Electronics Supply Center, and Defense General Supply Center. We also obtained information on delinquent deliveries from the Defense Industrial Supply Center and the Defense Personnel Support Center which is scheduled to implement SAMMS. In August 1981, the centers reported about 60,000 delinquent award line items, valued at about $135 million. The timely delivery of supply items is a significant concern of DLA. Untimely deliveries can increase procurement and other costs- and impair DLA's mission in supplying secondary or common use supply items to the military users. A DLA study estimates that monitoring delivery schedules costs nearly $10 million annually. We found DLA makes extensive use of the SAMMS and obtains voluminous delinquency data. However, it uses the automated data as a surveillance process to resolve delinquencies after the fact. DLA has not fully used SAMMS as a management tool to identify areas with the greatest number of delinquencies or potential for the greatest impact, and the causes of the delinquencies. We found the data is not used consistently and uniformly by the hardware supply centers and information essential for evaluating causes is not included in the system. Additionally, we found uncertainty at the centers on how contractors' performance histories ought to be considered in making awards. The hardware centers do not fully use the F-38 report, which is the SAMMS contract delinquency report, to segregate the volumin- ous amount of delinquency data. By segregating the data the centers Oa3'19 I

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