Army Inventory: Changes to Stock Funding Reparables Would Save Operations
and Maintenance Funds (Letter Report, 05/31/94, GAO/NSIAD-94-131).

This report reviews the Army's implementation of a Pentagon requirement
to fund the procurement of reparable items through a stock fund, called
stock funding of depot level reparables.  GAO found that the Army's
switch to the fund has helped reduce demand for reparable items about 55
percent--from $8.3 billion in fiscal year 1991 to $3.7 billion at the
end of fiscal year 1993.  The decreased demand allowed the wholesale
system to reduce its procurement of reparables by about 75 percent, from
$1.8 billion to $443 million during the same period.  This report also
discusses how the switch has affected management of maintenance and
inventory activities and use of operation and maintenance funds at the
unit level.

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

 REPORTNUM:  NSIAD-94-131
     TITLE:  Army Inventory: Changes to Stock Funding Reparables Would 
             Save Operations and Maintenance Funds
      DATE:  05/31/94
   SUBJECT:  Military inventories
             Military materiel
             Inventory control systems
             Army procurement
             Property and supply management
             Army supplies
             Federal supply systems
             Spare parts
             Military cost control
IDENTIFIER:  Desert Storm
             Defense Business Operations Fund
             M88 Recovery Vehicle
             Army Integrated Sustainment Maintenance Project
             
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