Environmental Protection: Information on the Purchase, Use, and  
Disposal of Engine Lubricating Oil (02-JAN-03, GAO-03-340).	 
                                                                 
Concerned with the time, money, and resources that the federal	 
government expends servicing its vehicle and engine fleet, the	 
Senate Committee on Environment and Public Works asked GAO to	 
compile information on the government's use of engine lubricating
oil. GAO was asked to determine: (1) how much engine lubricating 
oil the federal government bought in fiscal years 1999, 2000, and
2001; (2) what costs are incurred for the disposal and recycling 
of engine lubricating oil; (3) what costs are incurred for	 
changing motor oil in military and civilian fleets; (4) what	 
logistical implications exist for the transport of engine	 
lubricating oil during recent military operations; and (5) what  
options exist for reducing purchase, maintenance, and disposal	 
costs for engine lubricating oil. To conduct its study, GAO	 
focused on three agencies that account for 79 percent of all	 
non-tactical vehicles owned or leased by the U.S. government: the
U.S. Postal Service (USPS), the Department of Defense (DOD), and 
the General Services Administration (GSA). It compiled		 
information only on engine lubricating oil used in ground	 
vehicles and equipment and not in aircraft and ships.		 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-340 					        
    ACCNO:   A05784						        
  TITLE:     Environmental Protection: Information on the Purchase,   
Use, and Disposal of Engine Lubricating Oil			 
     DATE:   01/02/2003 
  SUBJECT:   Cost accounting					 
	     Cost analysis					 
	     Oil resources					 
	     Cost control					 
	     Strategic planning 				 

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GAO-03-340

Report to the Chairman and Ranking Minority Member, Committee on
Environment and Public Works, U. S. Senate

United States General Accounting Office

GAO

January 2003 ENVIRONMENTAL PROTECTION

Information on the Purchase, Use, and Disposal of Engine Lubricating Oil

GAO- 03- 340

There is no aggregate data on the purchase, use, and disposal of engine
lubricating oil for the federal government as a whole. However, the three
agencies included in GAO*s review* USPS, DOD, and GSA* collectively bought
nearly 41 million quarts of engine lubricating oil, valued at about $37. 3
million, from fiscal years 1999 to 2001.

Only limited data is available on the costs for disposing and recycling
engine lubricating oil used in the land- based vehicle fleets of these
three agencies. The Army and Navy maintain some disposal data, but the Air
Force, GSA, and USPS do not have any aggregate information available. In
addition, information is not readily available on the number of labor
hours and costs incurred in changing oil in the agencies* vehicles.
Finally, it is difficult, if not impossible, to estimate the costs of
transporting engine lubricating oil during military operations because the
transportation costs depend largely on the specific scenario.

Several methods were identified for reducing the cost and use of engine
lubricating oil:

 Bypass filters, used in conjunction with traditional oil filters, can
substantially reduce the number of oil changes required by increasing the
intervals between oil changes by two to ten times.  Synthetic lubricating
oils have the potential to increase the length of

time between oil changes, reduce engine wear, and enhance the engine*s
operation over a greater range of temperatures.  Oil analysis programs
can also reduce engine oil use. These programs

determine when it is time to change the oil by testing its condition in
the engine rather than by following a regularly scheduled oil change based
on mileage or usage.

Engine Lubricating Oil Purchases for Selected Agencies (FY 1999- 2001)
DOD/ Military Fiscal year Army Air

Force Navy Marine Corps Total USPS GSA Total

Dollars in millions 2001 $6.2 $1.5 $0.9 $0.7 $9.3 $2.1 $1.5 $12.9

2000 6.1 1. 4 1.0 0. 6 9.1 2. 0 1.5 12.6

1999 5.3 1. 7 0.7 0. 5 8.2 2. 2 1.4 11.8

Total $17.6 $4.6 $2.6 $1.8 $26.6 $6.3 $4.4 $37.3

Quarts in millions

2001 6.4 1. 7 1.0 0. 8 9.9 2. 1 1.4 13.4

2000 6.8 1. 8 1.3 0. 7 10.6 2. 1 1.3 14.0

1999 6.0 2. 1 1.0 0. 6 9.7 2. 3 1.3 13.3

Total 19.2 5. 6 3.3 2. 1 30.2 6. 5 4.0 40.7

Source: Data and estimates provided by USPS, GSA, and DOD. ENVIRONMENTAL
PROTECTION

Information on the Purchase, Use, and Disposal of Engine Lubricating Oil

www. gao. gov/ cgi- bin/ getrpt? GAO- 03- 340. To view the full report,
including the scope and methodology, click on the link above. For more
information, contact William M. Solis at (202) 512- 8365 or solisw@ gao.
gov. Highlights of GAO- 03- 340, a report to the

Chairman and Ranking Minority Member, Committee on Environment and Public
Works, U. S. Senate

January 2003

Concerned with the time, money, and resources that the federal government
expends servicing its vehicle and engine fleet, the Committee asked GAO to
compile information on the government*s use of engine lubricating oil.

GAO was asked to determine:  How much engine lubricating

oil the federal government bought in fiscal years 1999, 2000, and 2001; 
What costs are incurred for the

disposal and recycling of engine lubricating oil;  What costs are
incurred for

changing motor oil in military and civilian fleets;  What logistical
implications

exist for the transport of engine lubricating oil during recent military
operations; and  What options exist for

reducing purchase, maintenance, and disposal costs for engine lubricating
oil.

To conduct its study, GAO focused on three agencies that account for 79
percent of all non- tactical vehicles owned or leased by the U. S.
government: the U. S. Postal Service (USPS), the Department of Defense
(DOD), and the General Services Administration (GSA). It compiled
information only on engine lubricating oil used in ground vehicles and
equipment and not in aircraft and ships.

Page i GAO- 03- 340 Engine Lubricating Oil Letter 1

Appendix I Briefing to the Senate Committee on Environment and Public
Works 6

Abbreviations

AOAP Army Oil Analysis Program DLA Defense Logistics Agency DOD Department
of Defense GSA General Services Administration NCDOT North Carolina
Department of Transportation USPS U. S. Postal Service Contents

Page 1 GAO- 03- 340 Engine Lubricating Oil

January 2, 2003 The Honorable James M. Jeffords Chairman The Honorable Bob
Smith Ranking Minority Member Committee on Environment and Public Works
United States Senate

As you requested, we are providing you with information on the purchase,
use, and disposal of engine lubricating oil by the federal government. You
were concerned about the money, time, and resources that the federal
government spends servicing its vehicle and engine fleet. As agreed with
your offices, our work focused, to the extent that data was available, on
the following five areas:

* How much engine lubricating oil did the federal government purchase and
what did those purchases cost for each of the most recent 3 fiscal years
for which such information was available?  How much in direct costs did
the federal government pay for the disposal

and/ or recycling of engine lubricating oil in each of the most recent 3
fiscal years for which such information was available?  How much in
direct contracted costs or federal employee labor costs were

incurred by the federal government for the changing of motor oil in
federal civilian and military fleet engines in each of the most recent 3
fiscal years for which such information was available?  What were the
costs and other logistical implications for the transport of

engine lubricating oil by the military in recent military operations such
as the Persian Gulf War and peacekeeping efforts in the Balkans?  What
are options for reducing the costs of the purchase, maintenance, and

disposal of engine lubricating oil, including the use of technologies that
would eliminate the need for frequent oil changes?

On November 21, 2002, we provided your offices with a briefing on the
results of this review, including our scope and methodology. This report
transmits the briefing, which is reprinted as an appendix.

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 03- 340 Engine Lubricating Oil

There is no aggregate data on the purchase, use, and disposal of engine
lubricating oil for the federal government. The three agencies included in
our review* the Department of Defense (DOD), the General Services
Administration (GSA), and the U. S. Postal Service* collectively purchased
about 41 million quarts of engine lubricating oil, valued at about $37.3
million, from 1999 to 2001. DOD*s data reflects purchases that the
military services made from the Defense Logistics Agency for both combat
and commercial- type vehicles, but it does not include oil that the
services bought from commercial vendors on the local economy. 1 DOD
officials could not estimate the magnitude of these purchases from the
commercial market. Because GSA does not perform oil changes itself, its
data is based on estimates of the number of oil changes that commercial
vendors or other federal maintenance facilities performed on the fleet. As
such, the cost of the oil used in these changes cannot be identified
separately from other maintenance costs. GSA*s data excludes oil changes
performed on GSA vehicles by other federal agencies* maintenance
facilities. The Postal Service*s data may not include some oil purchases,
such as oil bought using petty cash, and oil changes performed by
commercial vendors. However, Postal Service officials estimate that the
amount of purchases not captured in this data is minimal (1 percent or
less).

Our work indicated that only limited data on engine oil disposal and
recycling costs is available from the agencies we reviewed. The Air Force
and Postal Service do not have any aggregate disposal data available for
engine lubricating oil. GSA also does not have disposal data because it
relies on commercial vendors or other federal maintenance facilities to
change and dispose of oil. However, the Army and Navy do maintain some
information on engine oil disposal. For example, the Chief of Naval
Operations and the Commandant of the Marine Corps report annually on
disposal and recycling costs/ quantities for waste oil for Navy and Marine
Corps installations. On average, the Navy and Marine Corps annually
disposed of 14,741 tons and 2,892 tons of waste oil, respectively during
fiscal years 1999 to 2001. The Army has disposal data for only a few
selected installations from its automated hazardous materials tracking
system, which has been partially fielded only as a pilot project thus far.

Our review indicated that records on actual labor hours and costs incurred
for oil changes are not readily available at the three agencies we
reviewed.

1 DOD*s data includes engine lubricating oil used in internal combustion
engines for ground vehicles and equipment, but does not include
lubricating oil for aircraft or ship engines. Summary

Page 3 GAO- 03- 340 Engine Lubricating Oil

However, we noted that some data exists that would help them estimate
labor hours and other costs for oil changes for selected vehicles. For
example, Army officials told us that a draft Army Oil Analysis Program
study includes estimated data on labor and other costs for oil changes on
selected tactical vehicles. Also, GSA and Postal Service officials said
they could estimate the number of oil changes for their vehicle fleets
based on maintenance schedules. They could then calculate the costs for an
oil change after making certain assumptions, such as the amount and cost
of labor involved in making each oil change and that oil changes were
actually performed as scheduled.

DOD officials told us that transportation costs for engine lubricating oil
during military operations are scenario dependant and difficult, if not
impossible, to determine. Typically, the military services store and
transport oil to sustain them for the short term during contingency
operations, usually for the first 30 days. They usually transport oil with
other supplies and equipment or preposition oil supplies on ships or land
overseas.

The Defense Logistics Agency (DLA) generally provides for follow- on
supplies to the theater, which are requisitioned by the services as
needed. DLA may transport oil to the theater from the United States or
purchase it locally at overseas locations where needed, depending on the
specific operation to be supported. In the case of Desert Storm, for
example, DLA officials stated that some engine lubricating oil was
provided by Saudi Arabia at no cost to the U. S. government, while some
oil was purchased commercially by DLA from the United Kingdom.

Our limited literature search and discussions with agency officials to
date have identified several options for reducing the costs of engine
lubricating oil use. They are:

 Bypass filters, which are used in conjunction with traditional oil
filters to remove smaller contaminant particles. These filters are
currently in use in private industry, at the North Carolina Department of
Transportation (NCDOT), and at some U. S. military locations. Studies have
shown that bypass filters substantially reduce the numbers of oil changes
required by increasing the intervals between oil changes from as much as 2
to 10 times. For example, in using these filters, NCDOT dump truck
intervals increased from 5,000 miles to 10,000 miles and Scott Paper
Company woodlands equipment intervals increased from 100 hours to 1,000
hours.

Page 4 GAO- 03- 340 Engine Lubricating Oil

 Synthetic lubricating oils, which can potentially increase the length of
time between oil changes, reduce engine wear, and enhance the engine*s
operation over a greater range of temperatures. The Army is currently
funding research in this area.

 Oil analysis programs, which determine when oil changes are due based on
the condition of oil samples drawn from vehicles regularly and tested in
labs. Oil changes are made only when they are recommended by the lab,
rather than performed on a regularly scheduled basis. Preliminary analyses
performed by the Army as part of the Army Oil Analysis Program (AOAP) have
indicated that the Army has saved about $81 million in oil change costs
during the past 3 fiscal years, excluding disposal costs or AOAP lab
operating costs. We have not validated the study*s findings or its
methodology.

To conduct our review, we obtained information on engine oil purchases,
disposal, and use from three agencies that account for 79 percent of the
total non- tactical vehicles owned or leased by the U. S. government* the
U. S. Postal Service (35 percent); GSA (29 percent); and DOD (15 percent).
We held discussions or obtained data from GSA*s Federal Supply Service; U.
S. Postal Service headquarters; the White House Task Force on Recycling;
DOD*s Offices of the Deputy Under Secretary of Defense for Logistics and
Materiel Readiness and the Deputy Under Secretary of Defense for
Installations and Environment; DLA*s Defense Supply Center Richmond and
the Defense Reutilization and Marketing Service; and several other
subordinate agencies and offices in each of the military services. We did
not validate any of the data provided by the selected agencies or assess
the merits of the options identified for reducing the costs of engine
lubricating oil use. We performed our work from August through December
2002 in accordance with generally accepted government auditing standards.

In providing oral comments on the briefing slides pertaining to their
agencies, GSA and Postal Service representatives stated that they agreed
with the information presented. Additional comments on the material were
incorporated as appropriate. DOD provided technical comments on a draft of
this report, which we have also incorporated as appropriate.

We are sending copies of this report to the Chairmen and Ranking Minority
Members of other Senate and House committees and Scope and

Methodology Agency Comments

Page 5 GAO- 03- 340 Engine Lubricating Oil

subcommittees that have jurisdiction and oversight responsibilities for
DOD, GSA, and the Postal Service. We are also sending copies to the
Secretary of Defense, the Administrator of GSA, the Postmaster General,
and the Director of the Office of Management and Budget. Copies will also
be available at no charge on our Web site at www. gao. gov.

If you or your staff have any questions about this report, please contact
me at (202) 512- 8365 or e- mail me at solisw@ gao. gov. Key contributors
to this report were Ken Knouse, Cary Russell, Betsy Mead, and Andria Key.

William M. Solis Director, Defense Capabilities

and Management

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 6 GAO- 03- 340 Engine Lubricating Oil

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Information on the Purchase, Use, and Disposal of Engine

Lubricating Oil Briefing to the Senate Committee on

Environment and Public Works November 21, 2002

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 7 GAO- 03- 340 Engine Lubricating Oil

2

Introduction

As you requested, we are providing information on the purchase, use, and
disposal of engine lubricating oil by the federal government. You were
concerned that, at this time of

heightened attention to military effectiveness, government efficiency,
energy security, and environmental protection, the money, time, and
resources that the federal government spends servicing its vast vehicle
and engine fleet are of critical importance.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 8 GAO- 03- 340 Engine Lubricating Oil

3

Objectives

* How much engine lubricating oil did the federal government purchase and
what was the cost of those purchases for each of the most recent 3 fiscal
years for which such information was available?

 How much in direct costs did the federal government pay for the disposal
and/ or recycling of engine lubricating oil in each of the most recent 3
fiscal years for which such information was available?

 How much in direct contracted costs or federal employee labor costs were
incurred by the federal government for the changing of motor oil in
federal civilian and military fleet engines in each of the most recent 3
fiscal years for which such information was available?

 What were the costs and other logistical implications for the transport
of engine lubricating oil by the military in recent military operations,
such as the Persian Gulf War and peacekeeping efforts in the Balkans?

 What are the options for reducing the costs of the purchase,
maintenance, and disposal of engine lubricating oil, including the use of
technologies that would eliminate the need for frequent oil changes?

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 9 GAO- 03- 340 Engine Lubricating Oil

4

Scope and Methodology

 Focused on three agencies that account for 79 percent of the total non-
tactical vehicles owned or leased by the U. S. government:  U. S. Postal
Service (USPS) - 35 percent  General Services Administration (GSA) - 29
percent  Department of Defense (DOD) - 15 percent.

(DOD also maintains numerous tactical vehicles, which were also part of
our review.)  Found no aggregate data on oil use available for the U. S.
government as a whole.  Compiled data only on engine lubricating oil used
in internal combustion engines for ground vehicles and equipment. Did not

include lubricating oils for aircraft or ship engines.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 10 GAO- 03- 340 Engine Lubricating Oil

5

Scope and Methodology

 Identified 5 different types of oil based on DOD specifications:  Did
not validate any data provided by the selected agencies.  Performed
review from August through December 2002 in accordance with

generally accepted government auditing standards.

Description Specification of Specification Number

Lubricating Oil, Internal Combustion Engine, Combat/ Tactical Service MIL-
PRF- 2104 Lubricating Oil, Automotive Engine, API Service SH CID A- A-
52039 Lubricating Oil, Heavy- Duty Diesel Engine CID A- A- 52306
Lubricating Oil, Internal Combustion Engine (Preservation & Break- In)
MIL- PRF- 21260 Lubricating Oil, Internal Combustion Engine, Arctic MIL-
PRF- 46167

Source: DOD.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 11 GAO- 03- 340 Engine Lubricating Oil

6

Scope and Methodology

Held discussions and/ or obtained data from the following organizations: 
GSA*s Federal Supply Service  USPS Headquarters  White House Task Force
on Recycling  DOD: Office of the Deputy Under Secretary of Defense for
Logistics and Materiel Readiness, and the Office of the Deputy Under
Secretary of Defense for Installations and Environment

 Defense Logistics Agency: Defense Supply Center Richmond, and Defense
Reutilization and Marketing Service

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 12 GAO- 03- 340 Engine Lubricating Oil

7

Scope and Methodology

 U. S. Army: Office of the Deputy Chief of Staff G- 4, U. S. Army
Materiel Command, and the U. S. Army Environmental Center  U. S. Air
Force: Office of the Deputy Chief of Staff for

Installations and Logistics, and Air Force Center for Environmental
Excellence

 U. S. Navy: Naval Facilities Engineering Command, and Naval Supply
Systems Command

 U. S. Marine Corps: Installations and Logistics Department

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 13 GAO- 03- 340 Engine Lubricating Oil

8

15% DOD 86,545

29% GSA 173,289

35% USPS 206,305

Worldwide Non- Tactical Vehicle Inventory by Federal Agency (FY 2001)

+ =

Other Dept. of Treasury Dept. of Interior Dept. of Justice Dept. of
Agriculture

129,975 22%

Note: Numbers may not add to 100 percent due to rounding. Source: GSA
Fiscal Year 2001 Federal Fleet Report.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 14 GAO- 03- 340 Engine Lubricating Oil

9

Other Defense Agencies 2%

Army Corps of Engineers 1%

Marine Corps 4% Air Force 46%

Navy 33% Army

14%

DOD Non- Tactical Vehicle Usage by Military Agency (FY 2001) DOD 15% Note:
Figure does not include vehicles leased from GSA. In fiscal year 2001, DOD
leased 98, 576 vehicles from GSA.

Source: GSA Fiscal Year 2001 Federal Fleet Report.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 15 GAO- 03- 340 Engine Lubricating Oil

10

 DOD has fewer non- tactical vehicles than GSA and USPS. However, it also
has a large number of tactical vehicles operated by the military services.

 As a result, DOD has a significantly higher amount of oil purchases.

Engine Lubricating Oil Purchases for Selected Agencies

FY 2001 Engine Lubricating Oil Purchases by Agency

USPS DOD GSA $2. 1 mil.

$9. 3 mil. $1. 5 mil.

Source: Defense Logistics Agency, U. S. Postal Service, and the General
Services Administration.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 16 GAO- 03- 340 Engine Lubricating Oil

11

Engine Lubricating Oil Purchases for Selected Agencies (FY 1999- 2001)

1 DOD/ military data reflects purchases made by the military services from
the Defense Logistics Agency (DLA). These purchases do not include oil
bought from commercial vendors by the services on the local economy. DOD
officials could not estimate the magnitude of the purchases not included
in the data.

3 GSA data is based on estimates of the number of oil changes performed.
GSA does not actually perform oil changes itself. Rather, they are
performed by commercial vendors or other federal maintenance facilities.
As such, the cost of the oil used in these changes cannot be identified
separately from other maintenance costs. The GSA data above excludes oil
changes performed on GSA vehicles by other federal agencies* maintenance
facilities. Source: Defense Logistics Agency, U. S. Postal Service, and
the General Services Administration.

2 Postal Service data may not include some oil purchases, such as oil
bought using petty cash and oil changes performed by commercial vendors.
However, Postal Service officials believe the amount of purchases not
captured in this data is minimal (1 percent or less).

Army Air Force Navy Ma rine Corps Total

2001 $6. 2 $1. 5 $0. 9 $0. 7 $9.3 $2.1 $1. 5 $12.9 2000 6.1 1. 4 1.0 0. 6
9.1 2. 0 1. 5 12.6 1999 5.3 1. 7 0.7 0. 5 8.2 2. 2 1. 4 11.8

Total $17. 6 $4. 6 $2. 6 $1. 8 $26.6 $6.3 $4. 4 $37.3

2001 6.4 1. 7 1.0 0. 8 9.9 2. 1 1. 4 13.4 2000 6.8 1. 8 1.3 0. 7 10.6 2. 1
1. 3 14.0 1999 6.0 2. 1 1.0 0. 6 9.7 2. 3 1. 3 13.3

Total 19.2 5. 6 3.3 2. 1 30.2 6. 5 4. 0 40.7 TOTAL

$ Millions Quart s (Millions)

DOD/ Military 1 USPS 2 GSA 3 Fiscal Year

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 17 GAO- 03- 340 Engine Lubricating Oil

12

Air Force 16%

Navy 10% Army

66% Marine Corps

8%

Oil Purchases by Military Service (FY 2001) DOD

$9.3 million

SOURCE: Defense Logistics Agency.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 18 GAO- 03- 340 Engine Lubricating Oil

13

0 1,000, 000

2,000, 000 3,000, 000

4,000, 000 5,000, 000

6,000, 000 7,000, 000

8,000, 000 9,000, 000

COMBAT & TACTICAL SERVICE $7, 542,256.65 8, 179,637 COMMERCIAL OILS $1,
030,133.59 1, 343,092 OTHER MILITARY APPLICATIONS $667, 837. 90 322, 580

Purchase Cost ($) Quantity (Quarts )

Note: Commercial oils are used in administrative use commercial type
vehicles, but are also used in some tactical wheeled vehicles. Military
Service Purchases by Oil Type (FY 2001)

Source: Defense Logistics Agency.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 19 GAO- 03- 340 Engine Lubricating Oil

14

Disposal and Recycling Costs for Engine Lubricating Oil

 Only limited data is available from certain agencies.  Chief of Naval
Operations and Commandant of the Marine

Corps report annually on disposal and recycling costs/ quantities for
waste oil (for Navy and Marine Corps installations).

 Army has disposal data for only a few selected installations from its
automated hazardous materials tracking system (system only partially
fielded as a pilot project).

 Air Force and USPS do not have any aggregate disposal data available for
engine lubricating oil. GSA also does not have disposal data because it
relies on commercial vendors or other federal maintenance facilities to
change and dispose of oil.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 20 GAO- 03- 340 Engine Lubricating Oil

15

Average Annual Waste Oil Disposal/ Recycling Amounts for the Navy and
Marine Corps

0 5,000

10, 000 15, 000

20, 000

Tons

Recycled 7,165 1, 646 8,811 Disposed 7,576 1, 246 8,822

Navy Marine Corps Total

14,741 Tons 2, 892 Tons

17,633 Tons Note: Waste oil includes engine lubricating oil as well as
other waste, such as transmission and hydraulic fluids. Source: GAO
analysis of Navy data for fiscal years 1999- 2001.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 21 GAO- 03- 340 Engine Lubricating Oil

16

Average Annual Waste Oil Disposal/ Recycling Net Costs for the Navy and
Marine Corps

-$ 400, 000 -$ 200, 000

$0 $200, 000

$400, 000 $600, 000

$800, 000 $1, 000,000

Disposal Costs Recycle Revenue Net Cost

Navy Marine Corps Total

Source: GAO analysis of Navy data for fiscal years 1999- 2001.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 22 GAO- 03- 340 Engine Lubricating Oil

17

Labor and Contract Costs for Changing Engine Lubricating Oil

 Records were not readily available on actual labor hours and costs
incurred for oil changes at the selected agencies.

 Potential exists for estimating labor hours and other costs for oil
changes for selected vehicles. For example,  A draft Army Oil Analysis
Program (AOAP) study includes estimated data on labor and other costs for
oil changes on selected tactical vehicles. Could potentially duplicate
part of

study methodology to examine additional Army vehicles.  GSA and USPS can
estimate numbers of oil changes for their vehicle fleets based on
maintenance schedules. Costs for an oil change can also be estimated using
assumptions

about costs, such as the amount and cost of labor per change and the fact
that oil changes were actually performed as scheduled.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 23 GAO- 03- 340 Engine Lubricating Oil

18

80% 20%

Oil Change Costs for Selected Army Ground Vehicles from Draft AOAP Study

Percent of Total AOAP Ground Equipment Oil Samples Represented by Selected
Army Vehicles (FY1999- 2001)

Selected Equipment HMMWV

M1A1/ A2 Series Abrams Tank M2/ M3 Bradley Fighting Vehicle

Multiple Launch Rocket System (MLRS)

Family of Medium Tactical Vehicles (FMTV)

Source: GAO analysis of data from Army- sponsored study, United States
Department of Army, Army Oil Analysis Program Economic Benefits Analysis,
University of Alabama in Huntsville.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 24 GAO- 03- 340 Engine Lubricating Oil

19

Oil Change Costs for Selected Army Ground Vehicles from Draft AOAP Study

LaborCost perOilChange

$26 $43

$28 $28

$67 $0 $10 $20 $30 $40 $50 $60 $70 $80 HMMWV

M1 SeriesAbramsTank M2/ M3Bradl eyFighti ngVehicle

Multi pleLaunchRocket System Fami lyofMedi umTactical Vehicles

CostsofanOil Changefor Selected ArmyGroundEquipment (Note 1)

$0 $50 $10 0 $15

0 $20 0 $25

0 $30 0 $35

0 $40 0 $45

0 $50 0 HMMWV(Note3)

M1Series Abrams Tank (Note2) M2/ M3Bradley Fi ghtingVehicle

Multi pleLaunchRocket System Family of MediumTactical Vehicles

Oil Filter Oil Labor

$203 $144 $144

$475 $47

NOTES: 1. An oil change for the purposes of the Army study included oil
for both the engine crankcase and the transmission. However, some of the
vehicles also use engine lubricating oil in other vehicle components such
as the steering system and the hydraulic system. Oil in these other
systems is not included in this data. 2. Total oil costs for the M1 of
$254. 70 includes $91. 50 for aircraft turbine engine oil, which was not
one of the oils in the scope of our review.

3. Total oil costs for the HMMWV of $14. 52 includes $6. 36 for automatic
transmission fluid, which was not one of the lubricating oils in the scope
of our review. Source: GAO analysis of data from Army- sponsored study,
United States Department of Army, Army Oil Analysis Program Economic
Benefits Analysis, University of Alabama in Huntsville.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 25 GAO- 03- 340 Engine Lubricating Oil

20

Oil Change Costs for Selected Army Ground Vehicles from Draft AOAP Study

Estimated Average Annua l Labor Cos ts for Oil Changes on Selec ted
Equipment (FY1 9 9 9 -2 0 0 1 )

$65 $33

$39 $6

$96 $239

$0 $50 $100 $150 $200 $250 $300 HMMWV

M1 Ser ies A br ams Tank M2/ M3 Bra d le y Fig h tin g Ve h icle

Multiple La u n ch Rocke t System Family o f Me d ium Tactica l Veh icle s

TOTAL

($) T h o u san d s

Estimated Labor Hours Expended for Oil Changes o n Selected Equ ipment
(FY1999- 2001) 0 24 6810121416 HMMWV

M1 Series A brams Tank M2/ M3 Bradley Fighting Veh icle

Multiple Launch Rocket System Family of Med ium Tactical Veh icles

TOTAL Labor Hours in Thousands

13. 8 5.6 0.3

2.3 1.9

3.8 Source: GAO analysis of data from U. S. Army sponsored study, United
States Department of Army, Army Oil Analysis Program Economic Benefits
Analysis, University of Alabama in Huntsville.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 26 GAO- 03- 340 Engine Lubricating Oil

21

Transportation of Oil for Military Operations

 Transportation costs for engine lubricating oil during military
operations are scenario- dependant and difficult (if not impossible) to
determine.

 Military services store and transport oil to sustain them for the short
term during operations (usually for the first 30 days).

 Oil is transported with other supplies and equipment, or prepositioned
overseas on ships or on land.

 Costs attributed to transporting the oil are difficult to determine. 
Defense Logistics Agency (DLA) provides for follow- on supplies to the

theater, and these are requisitioned by the services as needed.  DLA may
transport oil to theater from U. S. or purchase it locally at overseas
locations where needed (dependant on specific operations).

 For Desert Storm, some engine lubricating oil was provided by Saudi
Arabia at no cost to the U. S. government, while some oil was purchased
commercially by DLA from the United Kingdom.  Costs for transporting oil
are difficult to determine because contract prices from suppliers often
include transportation.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 27 GAO- 03- 340 Engine Lubricating Oil

22

Options for Reducing Oil Cost and Use

 Our limited literature searches and discussions with agency officials
have identified some methods for reducing costs of engine lubricating oil
use

 Bypass filters  Used in conjunction with traditional oil filters to
remove smaller

contaminant particles.  Currently in use in private industry, North
Carolina Department

of Transportation (NCDOT), and some U. S. military locations.  Studies
show bypass filters significantly reduce the number of

oil changes required. Increases in intervals between oil changes of 2 to
10 times have been realized.

 NCDOT dump truck intervals increased from 5,000 miles to 10, 000 miles.
 Scott Paper Company woodlands equipment from 100 hours to 1,000 hours.

 Synthetic lubricating oils  Potentially decrease number of oil changes
needed.

Reductions of up to two to five times versus conventional motor oil are
possible.  Research is being funded by the Army.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 28 GAO- 03- 340 Engine Lubricating Oil

23

Options for Reducing Oil Cost and Use

 Oil analysis programs  Oil analysis determines when oil changes are due
based on oil condition

 Oil samples are drawn from vehicles regularly and tested in labs.  Oil
changes are made only when recommended by lab (as opposed

to performing regularly scheduled oil changes).  Oil analysis used in
industry and government to extend

oil change intervals.  Trucking companies  U. S. military

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 29 GAO- 03- 340 Engine Lubricating Oil

24

Options for Reducing Oil Cost and Use

 A recent draft study estimates the AOAP has saved the Army over $80
million in oil change costs during the past 3 fiscal years (not including
disposal costs or AOAP lab operating costs).

 Army uses AOAP to identify when oil changes are needed for certain
vehicles and equipment.  Most combat and tactical equipment is covered by
AOAP (aviation

and ground equipment).  Study compared estimated costs for oil changes on
vehicles

enrolled in AOAP against estimated costs if AOAP were not used (i. e., oil
changes based on scheduled intervals).  Cost estimates were based on
projection of oil change

costs/ frequencies for 10 aviation and ground systems.  Draft study
findings and methodology were not validated by GAO.

 We did not assess the merits of the options identified for reducing the
costs of engine lubricating oil use.

Appendix I: Briefing to the Senate Committee on Environment and Public
Works

Page 30 GAO- 03- 340 Engine Lubricating Oil

25

Cost Savings Estimates from Army Oil Analysis Program (AOAP) Draft Study

$151.6 $47.4 Estimated Oil

Change Costs Without AOAP

$81.3 $25.8 Estimated Savings

$70.3 $21.6 Estimated Oil

Change Costs Using AOAP

Total FY99- 01 Fiscal

Year 2001

Dollars in millions

Source: GAO analysis of data from Army- sponsored study, United States
Department of Army, Army Oil Analysis Program Economic Benefits Analysis,
University of Alabama in Huntsville.

(350244)

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