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B-163478 1 (1971-10-06)

handle is hein.gao/gaobaaffd0001 and id is 1 raw text is: 



                      UNITED STATES GENERAL ACCORU      OFFICE
                               WASHINGTON, D.C. 20

DEFENSE DIVISION                                 ,
                                              '7-               OCT   6


        B-163478
                                                     LI~ lII Ill ll11111 11111 l111IlI 11 1 11111  i

                               zc                       LM095508
   )    Dear Mr. Secretary:

             Our recent review of the material utilization program at the
       Defense Logistics Services Center (rLSC) and five inventory con-      -   -
       trol points showed that substantial improvements have been achieved
         since our last review in 1968. Inventory control points are improv-
         ing the accuracy of information reported to ILSC and are advising
         DSC--on a more timely basis--of material accepted, rejected, and
         shipments denied.

             During fiscal years 1969 - 1971, material valued at $173
        million was transferred within and between services under the cen-
        tralized screening program. In 1969, material transferred was val-
        ued at $51.9 million. while in 1971 it had increased to $68.1 million.
        This represents an increase of about 31 percent.

             However, we believe the program could be more effective if ILSC
        were to screen requirements for the Defense Supply Agency (ESA) as
        it does for the other military activities. We believe the inclusion
        of MSA requirements under the centralized screening program would
        eliminate the need for separate screenings now performed by DSA
        centers.

              During our review, we noted that actions taken by the Army and
        Air Force have improved the accuracy of the information they are re-   '7
        porting to DMSC. On the other hand, we noted that the Navy has not
        improved the accuracy of its information.

             We are advising you of these matters so that needed management
         attention will be given to them to further increase the effective-
         ness of the material utilization program.

         DENSE SUPPLY AGNCY CENTER PARTICIPATION
         IN THE CENTRALIZED SCREENING PROGRAM

              As a means of more effectively determining whether material
         was available in one service to satisfy the need of another service,



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                             50 TH ANNIVERSARY 1921 -1971

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