Contract Terminations at Defense Supply Center Columbus and Defense Supply Center Richmond

摘要

In its testimony before Congress, the General Accounting Office stated that about $34 billion, about half of the DoD inventory of secondary items, was not needed to support war reserve or current operating requirements. As part of its National Performance Review Reinvention Impact Center, DoD set a goal of reducing DoD inventory by $12 billion by the year 2000. DoD incorporated the goal into its Government Performance and Results Act plan. DoD inventory control points, which manage spare and repair parts, procure supply items, and award contracts, initiate contract terminations to avoid the purchase of unneeded inventory. Defense Logistics Agency (DLA) inventory control points are located at four supply centers. From September 1996 to July 1997, the DLA supply centers, excluding the Defense Supply Center Philadelphia, had 38,192 purchases in process, valued at about $664 million, for materiel that potentially exceeded requirements. Included in those totals, the Defense Supply Center Columbus and the Defense Supply Center Richmond had 19,803 purchases in process, valued at about $522 million. The overall audit objective was to determine whether the DLA wholesale inventory control points terminated the procurement of excess quantities of materiel in response to reduced inventory requirements. Specifically, we followed up on the recommendations made in inspector General, DoD, Report No. 93-146, Contract Terminations at DoD Wholesale inventory Control Activities,,, June 30, 1993. We included a review of the management control program as it applied to the audit objectives. This report focused on two DLA inventory control points: the Defense Supply Center Columbus and the Defense Supply Center Richmond. A subsequent report will address the same audit objectives at the two remaining supply centers.