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 1999-11-01 monographic deposited born digital 25 p. GA 1.13:NSIAD-00-5 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-5 P0b002ee18037e203 f:ns00005 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-00-5 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-00-5 NSIAD-00-5 Military inventories Air Force procurement Inventory control systems Logistics Cost effectiveness analysis Military cost control Spare parts Internal controls Letter Report NSIAD Pursuant to a congressional request, GAO reviewed inventory the Air Force had on contract that was excess to current operating requirements.<p/>GAO noted that: (1) the Air Force did not always cancel purchases that exceeded current operating requirements; (2) the Air Force cancelled contracts for $5.5 million of the $162.4 million excess inventory that GAO reviewed, but it could have cancelled more; (3) contracts for unnecessary items are not being cancelled primarily because the Air Force process for cancelling contracts takes a long time, during which costs are incurred for which the government is liable; (4) specifically, it takes 60 to 90 days to provide managers with the requirement information needed to make cancellation decisions; (5) also, the Air Force model provides for over 63 months of supply--more time than needed to order and receive items; (6) in addition, the model uses invalid requirements that reduce quantities to be cancelled; (7) once a purchase is considered for cancellation, Air Force managers use a model to determine if the savings from cancelling the contract would exceed the cost of reordering the items at a later date; (8) in several cases that GAO reviewed, the model indicated that it was not cost beneficial to cancel contracts for unneeded inventory items because of potential reprocurement costs; (9) however, the model is flawed because it does not consider parts recovered from retired weapon systems that are available to be reused; (10) as a result, the model understates the amount of purchases that could be cancelled; and (11) in other cases, inaccurate records increased manager workloads by causing items to be unnecessarily reviewed. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-5/html/GAOREPORTS-NSIAD-00-5.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-5/pdf/GAOREPORTS-NSIAD-00-5.pdf GAO/NSIAD-00-5 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-5 Letter Report GAO/NSIAD-00-5; Defense Inventory: Improvements Needed to Prevent Excess; Military inventories Air Force procurement Inventory control systems Logistics Cost effectiveness analysis Military cost control Spare parts Internal controls