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 1996-07-31 monographic deposited born digital 29 p. GA 1.13:NSIAD-96-188 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-96-188 P0b002ee18039345e f:ns96188 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-96-188 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-96-188 NSIAD-96-188 Defense cost control Fuel prices Energy costs Fuel sales Aviation fuels Energy industry Intragovernmental revolving funds Defense economic analysis Fuel supplies Defense Business Operations Fund Desert Storm Desert Shield DLA Bulk Fuel Program Letter Report NSIAD

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) reimbursement pricing policies for the Defense Logistics Agency's bulk and into-plane jet fuel programs, focusing on: (1) whether the pricing policies, rules, and regulations for both fuel programs are consistent with Defense Business Operations Fund (DBOF) policies; (2) changes in bulk fuel usage and into-plane sales; and (3) how into-plane jet fuel prices affect into-plane contractors' business.<p/>GAO found that: (1) standard prices for bulk and into-plane jet fuel programs generally comply with DBOF policies and procedures; (2) the standard price for bulk jet fuel is designed to recover the direct costs of supplying jet fuel; (3) DOD is unable to recover its total fuel cost because DOD excludes the cost of fuel operations at military installations; (4) the standard price for into-plane jet fuel is based on product and operation costs; (5) serious weaknesses exist in DBOF accounting and financial reporting systems; (6) although both bulk and into-plane fuel sales have declined due to military downsizing and realignment actions, worldwide bulk and into-plane sales have remained relatively stable; (7) DOD bulk fuel consumption declined over 30 percent between 1991 and 1995 primarily due to a reduction of the number of military flying hours; (8) in-plane fuel sales remained constant at 7 percent between 1991 and 1995 despite a dramatic increase and subsequent drop-off in sales in 1993 due to the Persian Gulf War; (9) many into-plane contractors believe that the implementation of separate standard prices for bulk and into-plane fuel in 1993 increased into-plane fuel prices; (10) there was no evidence that higher into-plane prices adversely affected domestic into-plane jet fuel sales; and (11) concerns about military aircraft stopping at air facilities without buying fuel or paying for services were not widespread or systematic. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-96-188/html/GAOREPORTS-NSIAD-96-188.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-96-188/pdf/GAOREPORTS-NSIAD-96-188.pdf GAO/NSIAD-96-188 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-96-188 Letter Report GAO/NSIAD-96-188; Defense Management: Information on Selected Aspects of DOD's Jet Fuel Program; Defense cost control Fuel prices Energy costs Fuel sales Aviation fuels Energy industry Intragovernmental revolving funds Defense economic analysis Fuel supplies Defense Business Operations Fund Desert Storm Desert Shield DLA Bulk Fuel Program Title 10 Section 2216 10 U.S.C. 2216 H. Rept. 104-208