Administration Of The Contract For Logistic Support Of The Kwajalein Missile Range V. B-152598

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B-152598 1 (1973-01-12)

handle is hein.gao/gaobaafop0001 and id is 1 raw text is:

f SUNITED STATES GENERAL ACCOUNTING OFFICE
0OFFICE
ou WASHINGTON, D.C. 20548

LOGISTICS AND COMMUNICATIONS 7
DIVISION
J 12 1973
B-152598

Dear Mr. Secretary:

We reviewed the a~ taj~~fecota4 o
logiStic..support of the Kwajalein Missile Range and submitted
draf-t o.rro to you and to the contrac'tf-
on June 22, 1972, for review and comments. The Department of .
J the Army and the contractor subsequently advised us of actions
taken or planned to improve range management.

The more significant matters found during our review, our
proposals for improving management, and the Army's and the
contractor's corrective actions are summarized below.

BACKGROUND

Logistic support of the Kwajalein Missile Range, located
in the Marshall Islands, costs the Government about $25 mil-
lion a year under a cost-plus-awa.d/incentive--fee -coan,,act
administered by the U.S. Army Safeguard System Command and
its representatives at the range.

IMPROVEMENT OF SUPPLY OPERATIONS

The supply inventory consisted of about 57,000 line items
valued at about $4.6 million.

The contractor had been responsive to the supply needs of
the Kwajalein Missile Range but certain sqlRl,, ,rpq, ps$and
practices ,were inefficient and uneconomical. We proposed that
the Army direct the contr t~ to

--reduce inventory levels,

--restrict noncritical items in inventory to only those
supported by actual demand or realistic estimates of
future use and to dispose of those items not meeting
these criteria,

--improve the accuracy of records, and

--use lower-cost Government supply sources instead of
commercial sources as much as possible.

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