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PLRD-83-23 1 (1982-12-20)

handle is hein.gao/gaobabmxk0001 and id is 1 raw text is: 

              -ci- _ST--:s G-m22AL ACCOUNTING OFFICE        Z11



OCUREM ENT. LOGtsI CS.
AND READINESS DIVIS10N
                                                 DEC 2 0 1982


Admiral J. G. Williams
Chief of N4aval Material
Naval Material Command
Department of the Navy
                                                          121110
Dear Admiral Williams:

     Subject: Q uestionable Furding Computation for the Ship
                Intermediate M4aintenance Commercial Industrial
                Services -Program ,(GAO/PLRD-83-23)

      In a recent followup survey of intermediate maintenance
management for Navy ships, we found that a situation reported by
us 5 years ago is still occurzing. Certain work data important
to the budget process are routinely being recorded incorrectly at
some intermediate maintenance activities (IMAs), with the result
that Government funds budgeted for commercial contracts may be
overstated. Although the Navy is presently implementing a compre-
hensive management information system that should significantly
improve maintenance management and eliminate such problems as
the one we uncovered, this new system will not be in place and
completely functioning for severalyears. In the meantime, the
Navy needs to ensure that proceaures are changed to avoid over-
stating its budget requests.

     As you know, workload beyond the capacity of Navy IMAs is
performed by the private sector under the Commercial Industrial
Services (CIS) program. In our followup we found that, due to
inaccurate historical data, the Navy is overstating its need for
contractor support funds. In determining its contractor needs,
the Navy does not adjust work data for unproductive time errone-
ously recorded as productive time.

     As reported previously, I/ the Navy's Material Maintenance
Management (3M) system does not provide a separate accounting of
uhproductive time, so some supervisors record all available staff
hours--including leave, liberty, training, military duties, and




1/The Navy's Intermediate Ship Maintenance Program Can Be
  Improved (LCD-77-412, Sept. 23, 1977).


                                                  (943136)

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