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Defense Inventory: Trends in Services’ Spare Parts Purchased from the Defense Logistics Agency : Government Accountability Office (GAO) , April , 2002

April 2002

Government Accountability Office (GAO)

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From the report: "The number of spare parts that the military services ordered from the Defense Logistics Agency steadily declined from fiscal years 1996 through 2000; the reported dollar value of spare parts increased overall; and the types of spare parts purchased were drawn from 70 of 78 stock groups. Specifically, the total number of spare parts supplied annually by the Defense Logistics Agency to the services declined about 24 percent during fiscal years 1996-2000. Defense officials told us that military downsizing was the primary reason for the decline and that credit card usage and contractor maintenance support were also contributing factors. The total reported value of Defense Logistics Agency spare part sales to the services increased by about 18 percent from fiscal years 1996 through fiscal year 2000. The reasons cited for the dollar value increase were (1) Defense Logistics Agency’s shift to a mix of more expensive spare parts and (2) price increases due to inaccurate initial price estimates, long periods between procurements, and/or substantial changes in the quantity of spare parts purchased. Individual services had different spare parts leading their lists of purchases in fiscal year 2000: The highest reported dollar value of sales to the Navy was for electrical and electronic equipment components; for the Air Force it was engines, turbines, and associated components; for the Army and the Marine Corps, it was vehicle equipment components."



Government Accountability Office (GAO)


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