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LCD-80-94 1 (1980-08-11)

handle is hein.gao/gaobabawd0001 and id is 1 raw text is: I12.4jt GAO United States General Accounting Office Logistics and Washington, DC 20548 Communications Division B-198712 AUGUST 11, 198o The Honorable Clifford L. Alexander, Jr. The Secretary of the Army 112986 Dear Mr. Secretary: Subject: E Army Should Increase Its Efforts To Provide Government-Furnished Material To Contractor!Q(LCD-80-94) Four of the five Army inventory control points are not doing enough to use material in their long supply inventories as Government-furnished material (GFM) on major end-item production contracts. To ensure that long supply material is screened for potential use as GFM, the four commands should adopt procedures similar to those used by the Army's Troop Support and Aviation Materiel Readiness Command (TSARCOM). During fiscal years 1976 through 1979, TSARCOM used $4 million of long supply material as GFM in procuring Cobra helicopters. Maximum use of all Army long supply material would reduce payments to contractors and avoid material from becoming surplus and being disposed of with little or no recovery of its original cost. We performed our review at the five Army commands which function as inventory control points. We interviewed officials involved with material management, procurement, and production. We analyzed long supply inventory data for secondary items--funded by both the Army's stock fund and procurement appropriation-and information relating to fiscal year 1980 and later planned major end-item procurements. We discussed our findings with headquarters officials of the U.S. Army and its Materiel Development and Readiness Command (DARCOM). /1 (943065)