Improvement Needed for Inventory Management Practices on the T700 Technical, Engineering, and Logistical Services and Supplies Contract.

摘要

We determined whether the Department of Defense effectively managed the T700 Technical, Engineering, and Logistical Services and Supplies contract. Specifically, we reviewed inventory management practices on the Department of the Army's T700 Technical, Engineering, and Logistical Services and Supplies contract. This is the second report in a series of two reports and addresses whether T700 inventory was effectively managed. The Army improved its overall inventory management for the T700 by decreasing on-hand inventory by $11.5 million and reducing inventory from the prior GE contracts. However, opportunities for improvement still exist. Specifically, U.S. Army Contracting Command and Corpus Christi Army Depot officials did not meet goals to reduce and use existing Government-owned inventory for the T700 Technical, Engineering, and Logistical Services and Supplies contract. This occurred because U.S. Army Contracting Command and Corpus Christi Army Depot officials did not: * effectively monitor the reduction of inventory, and * did not require General Electric to use existing Corpus Christi Army Depot T700 spare parts inventory located at the Defense Logistics Agency. As a result, excess inventory levels still exist, and Army officials had at least 309,498 spare parts in excess of the contract requirements, valued at $25.4 million, which may be used to reduce future contract requirements.