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PLRD-83-82 1 (1983-06-01)

handle is hein.gao/gaobabmzk0001 and id is 1 raw text is: % a= UNITED STATES GENERAL ACCOUNTING OFFICE MWASHINGTON, O.C. 20548 NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIVISION JUNE 1, 1983 B-208191 The Honorable Verne Orr The Secretary of the Air Force Dear Mr. Secretary: 121528 Subject:I Air Force Breakout Efforts A're Ineffective (GAO/PLRD-83-82) We have reviewed the effectiveness of efforts at the Oklahoma City Air Logistics Center (OC-ALC) to implement the Air Force High Dollar Spare Parts Breakout Program.) We plan, during future audits, to assess this program in other Department of Defense (DOD) organizations. Both DOD and certain congressional committees are concerned about the continuing and worsening trend in noncompetitive procurement of spare parts. During fiscal year 1981, the Air Force Logistics Command. (AFLC) procured over $1 billion in engine spare parts with only about 11 percent of the procurements awarded competitively. On April 19, 1983, the Subcommittee on Legislation and National Security, House Committee on Government Operations, held hearings on breakout. At these hearings, DOD stated that it was aware that the breakout program had wandered and there was mounting concern that DOD was losing cost-saving opportunities. DOD also stated that (1) it will publish revised guidance on the breakout program, (2) it directed its components to review and to initiate steps to improve the procurement status of certain parts by the end of fiscal year 1984, and (3) on March 15, 1983, the Deputy Secretary of Defense directed the military departments and defense agencies to take steps to overcome factors inhibiting breakout of replenishment spare parts. In addition, the Air Force testified that our report findings were generally valid and that data problems and a lack of personnel were inhibiting breakout. In summary, we believe the Air Force is not breaking out, to the maximum practicable extent for competition or direct purchase, the high dollar value aircraft engine replenishment spare parts supplied by a large prime contractor. Breakout efforts at ALCs have been limited because of a lack of information on the actual manufacturers of the parts and uncertainty about the Government's rights to use technical data prepared by the prime contractor. (950648)

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