United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2000-08-23 monographic deposited born digital 31 p. GA 1.13:NSIAD-00-194 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-194 P0b002ee180390034 f:ns00194 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-00-194 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-00-194 NSIAD-00-194 Military inventories Inventory control systems Private sector practices Prices and pricing Defense cost control Defense procurement Logistics DOD Defense Reform Initiative DLA Maintenance, Repair, and Operations Prime Vendor Program Letter Report NSIAD

GAO provided information on the Department of Defense's (DOD) efforts to implement the maintenance, repair, and operations prime vendor program, focusing on: (1) how much the program is being used and how selected installations are using the program; and (2) whether DOD has a mechanism for evaluating the program's effectiveness relative to other procurement alternatives and for identifying and addressing implementation obstacles.<p/>GAO noted that: (1) DOD has begun implementing the Defense Logistics Agency's (DLA) maintenance, repair, and operations prime vendor program, but in fiscal year (FY) 1999, it covered only a small portion of business operations; (2) DLA has awarded prime vendor contracts to support military installations nationwide and at some overseas locations, and over 100 customers placed orders with these vendors in FY 1999; (3) these orders represented about $59 million, or less than 10 percent of the estimated $670 million DOD spent on facility maintenance supplies during that year; (4) use of the program varied widely among the installations; (5) at 7 of the 11 installations GAO examined, base personnel ordered, on average, about 55 percent of facilities maintenance supplies from the prime vendor during FY 1999; (6) of the other four installations, three did not use the program in FY 1999 and one could not quantify the extent to which the prime vendor was used; (7) DOD does not have a mechanism to evaluate the extent to which the prime vendor program has been used to streamline logistics operations or increase overall logistics system effectiveness; (8) in addition, DOD has not determined how the program should be used in conjunction with the other procurement methods to provide installations with the most efficient and effective supply system; (9) furthermore, DLA and the military departments have encountered significant issues while implementing the program that should be addressed for the program to operate as intended; (10) for example, at some installations, ineffective working relationships among DLA, the prime vendors, and the installations have limited the program's use; and (11) another issue raised by installation officials was that the prime vendors' prices for facilities maintenance supplies were often higher than the price the installation would pay if the items were purchased directly from a local merchant. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-194/html/GAOREPORTS-NSIAD-00-194.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-194/pdf/GAOREPORTS-NSIAD-00-194.pdf GAO/NSIAD-00-194 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-194 Letter Report GAO/NSIAD-00-194; Defense Inventory: Actions Needed to Evaluate Supply; Military inventories Inventory control systems Private sector practices Prices and pricing Defense cost control Defense procurement Logistics DOD Defense Reform Initiative DLA Maintenance, Repair, and Operations Prime Vendor Program Title 31 Section 720 31 U.S.C. 720