Use of Defense Logistics Agency Excess Parts for High Mobility Multipurpose Wheeled Vehicle Depot Repairs Will Reduce Costs.

摘要

We evaluated High Mobility Multipurpose Wheeled Vehicle (HMMWV) repair parts supply chain management at Red River Army Depot. Specifically, we reviewed Defense Logistics Agency (DLA) inventory levels, DLA annual customer demand, and the depot consumption of HMMWV repair parts to determine whether the supply chain was cost-effective. DLA Land and Maritime did not cost-effectively manage 118 HMMWV repair parts valued at $11.1 million while purchasing these parts from AM General, LLC for $17.6 million. This occurred because DLA Land and Maritime officials did not review DLA-owned inventory at key contract decision points to maximize use of its own stock. As a result, we identified $9.7 million of excess inventory that could be used for HMMWV maintenance requirements. Thus, DLA missed an opportunity to improve DoD cash flow by drawing down DLA-owned inventory before using commercial support. Furthermore, DLA incurred costs to maintain this excess inventory. The Director, DLA, should issue guidance to require periodic inventory reviews of DLA-owned inventory used in performance-based logistics agreements at award of each contract, issuance of modifications that add new program requirements, and exercise of option years.