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NSIAD-84-82 1 (1984-03-28)

handle is hein.gao/gaobabnhq0001 and id is 1 raw text is: 
                                                                     ,) 3*756

                       UNITED STATES GENERAL ACCOUNTING OFFICE
                              WASHINGTON, D.C. 20548


  NATIONAL SECURITY AND                        MARCH 28, 1984
INTERNATIONAL AFFAIRS DIVISION

       B-21 1771


                                                                   123756
       The Honorable Caspar W. Weinberger
       The Secretary of Defense

             Subject: Test Transfer of Consumable Supply Items to the
                       Defense Logistics Agency from the Military
                       Services (GAO/NSIAD-84-82)

       Dear Mr. Secretary:

            At the request of the Chairmen, Subcommittees on Defense,
       Senate and House Committees on Appropriations, we reviewed the
       Department of Defense's (DOD's) test transfer of about 200,000
       consumable items to the Defense Logistics Agency (DLA) from the
       military services. Before the test transfer, DLA managed about
       2 million consumable items and the services managed about 1.4
       million consumables, which had been coded for service retention
       under existing management criteria. Some consumables are con-
       sidered essential for the operations of weapon systems. We
       also evaluated the cost and military readiness impact of return-
       ing items, including weapon system essential items, to the serv-
       ices. In addition, we evaluated the methodology of the transfer
       to determine if the test should be terminated and weapon system
       management sensitive items should be returned to the services.

             Consumable items are those which are consumed in use or
       replaced after their use because they either cannot be repaired
       or it is uneconomical to do so. They include parts for air-
       craft, ships, tanks, etc.

             In summary, we found that:

             --The items transferred to DLA were not selected in a
               statistically valid manner. Therefore, items trans-
               ferred are not statistically representative of the
               1 million consumable items that were not transferred.
               Accordingly, test results cannot be projected to the
               remaining consumable items.


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