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<classification authority="sudocs">GA 1.13:GAO-02-452</classification>
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 <subject>Spare parts</subject>
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 <subject>Prices and pricing</subject>
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<titleInfo>
 <title>Defense Inventory: Trends in Services&apos; Spare Parts Purchased from the Defense Logistics Agency</title>
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<abstract>Defense Inventory: Trends in Services&apos; Spare Parts Purchased from
the Defense Logistics Agency (30-APR-02, GAO-02-452).		 
                                                                 
The Defense Logistics Agency (DLA) reported that a shortage of	 
spare parts has caused a decline in the military services&apos;	 
readiness, particularly in aviation readiness. In response,	 
Congress provided $1.1 billion in additional funding to purchase 
spare parts. According to DLA, shortages are a result of aging	 
systems and high operational tempo, which increase the total	 
number of spare parts required. The number of spare parts the	 
military services ordered declined between 1996 and 2000, but the
dollar value increased by 18 percent. Further, spare parts	 
purchased were drawn from 70 of 78 stock groups. Defense	 
officials told GAO that military downsizing was the primary	 
reason for the decline and that credit card usage and contractor 
maintenance support also contributed. The reasons cited for the  
increase were (1) DLA shifts to a mix of more expensive spare	 
parts and (2) price increases due to inaccurate initial price	 
estimates, long periods between procurements, and substantial	 
changes in the quantity of spare parts purchased.</abstract>
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 <topic>Spare parts</topic>
 <topic>Military procurement</topic>
 <topic>Prices and pricing</topic>
 <topic>DOD Defense Working Capital Fund</topic>
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