Air Force Logistics: Some Progress, But Further Efforts Needed to
Terminate Excess Orders (Letter Report, 10/13/93, GAO/NSIAD-94-3).

In response to earlier GAO recommendations, the Air Force has been
increasing its terminations of excess material orders. Terminations rose
to 47 percent in fiscal year 1991 alone ($676 million of $1.4 billion).
Although the Air Force has made great strides, opportunities for
improvements and economies still exist. The Air Force is missing
potential terminations--$126 million worth in one quarter GAO
reviewed--because it is using an unjustified six-month level of stock
above item requirements as a buffer in computing termination levels for
consumable items.  In addition, weaknesses in policies and practices
have caused some orders not to be terminated when it was economical to
do so, and others to be terminated when it was uneconomical.  Finally,
the Air Force is not making use of the increased availability of
deobligated funds from contract terminations to cut its annual budget.
As a result, the Air Force is overstating its annual funding needs.

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

 REPORTNUM:  NSIAD-94-3
     TITLE:  Air Force Logistics: Some Progress, But Further Efforts 
             Needed to Terminate Excess Orders
      DATE:  10/13/93
   SUBJECT:  Logistics
             Air Force procurement
             Military cost control
             Contract termination costs
             Cost effectiveness analysis
             Contract termination
             Air Force supplies
             Spare parts
             Inventory control systems
IDENTIFIER:  Ogden (UT)
             Oklahoma City (OK)
             Sacramento (CA)
             San Antonio (TX)
             Dayton (OH)
             
************************************************************************

We regret that the full text of this item is presently unavailable.

See the GAO FAQ - Section 2.0 for printed copy ordering information.
The FAQ is automatically retrieved with all WAIS search results or 
can be obtained by sending e-mail to: [email protected]