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PLRD-83-17 1 (1982-12-15)

handle is hein.gao/gaobabmsr0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON. D.C. 20548 PROCUREMENT, LOGISTICS, AND READINESS DIVISION B-209 928 DECEMBER 15, 1982 The Honorable Joseph P. Addabbo Chairman, Subcommittee on Defense Committee on Appropriations 120121 House of Representatives Dear Mr. Chairman: Subject: Combined Procurement of Spare Parts and Production Components Will Reduce Defense Weapon System Costs (GAO/PLRD-83-17) In response to your February 2, 1982, letter and subsequent discussions with your office, we reviewed Department of Defense (DOD) plans to buy spare parts concurrently with production com- ponents and the cost savings of doing so. We emphasized the use of the combined procurement procedure in the F/A-18 aircraft program and its effect on the budget. We found that: --The Navy did not fully implement the procedure on the F/A-18 in fiscal year 1982 and did not achieve the $30 million savings estimate provided to the Congress. --Full implementation of the procedure on the F/A-18 is - planned to start in fiscal year 1983. Navy officials estimate that using the combined procurement procedure could reduce the cost of production components and spare parts by 10 to 20 percent. At these rates the savings could range from $600 million to $1.2 billion over the life of the program. --Neither the fiscal year 1983 budget request nor the 5-year defense program submission reflect the savings that may result from using the combined procurement procedure in the F/A-18 program. --Use of the procedure on other weapon systems will be limited during fiscal year 1983. The combined procurement procedure is a technique whereby orders for spare parts are consolidated with orders for production (943379) )

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