Army Inventory: More Effective Review of Proposed Inventory Buys Could
Reduce Unneeded Procurement (Letter Report, 06/02/94, GAO/NSIAD-94-130).

GAO reviewed the termination of planned procurements at the
Tank-Automotive Command (TACOM), one of the Army's national inventory
control points, and found that TACOM was missing opportunities to
terminate or reduce planned procurements. Item managers and procurement
specialists did not always confer before awarding contracts. Without
communication, procurement personnel may be unaware of new
considerations that could affect the need for the procurement. Item
managers, in deciding whether to implement the requirement system's
recommended commitment termination or reduction, often changed the
requirements data to bring the requirements and inventory into balance.
In other instances, item managers relied on invalid, out-of-date, or
unverified data in deciding whether to implement the system's
recommendation. GAO's analysis of 31 sample items randomly selected from
the universe of 136 items that were in long supply and had items due as
of September 1993 found that procurements valued at nearly $800,000
could have been terminated. Procurements could be reduced as much as
$21.5 million annually if September 1993 was a representative month and
if the recommended commitment cutbacks were made when they first
appeared.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-130
     TITLE:  Army Inventory: More Effective Review of Proposed Inventory 
             Buys Could Reduce Unneeded Procurement
      DATE:  06/02/94
   SUBJECT:  Army procurement
             Procurement practices
             Equipment contracts
             Inventory control
             Military cost control
             Procurement cancellation
             Inventory control systems
             Military inventories
IDENTIFIER:  M1 Tank
             Saudi Arabia
             Desert Storm
             
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