Defense Acquisitions: Status of Defense Logistics Agency's Efforts to Address Spare Part Price Increases

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A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) has experienced significant increases in the prices it pays for consumable spare parts, which are "consumed" when used or discarded when worn out because they cannot be cost effectively repaired. The Defense Logistics Agency (DLA) manages four million consumable spare parts or 93 percent of all consumable spare parts used by the military services. DOD is required to perform price trend analyses on some categories of commercial spare parts, address unreasonable price escalation, and report the results to Congress for three ... continued below

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United States. General Accounting Office. March 28, 2002.

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Description

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) has experienced significant increases in the prices it pays for consumable spare parts, which are "consumed" when used or discarded when worn out because they cannot be cost effectively repaired. The Defense Logistics Agency (DLA) manages four million consumable spare parts or 93 percent of all consumable spare parts used by the military services. DOD is required to perform price trend analyses on some categories of commercial spare parts, address unreasonable price escalation, and report the results to Congress for three consecutive years beginning in April 2000. DLA has completed two price trend analyses for DOD. In addition to the price trend analyses, DLA also did a procurement management review in fiscal year 2000 to assess the overall risk of spare parts overpricing. The agency also has three information technology initiatives underway to determine price reasonableness for DLA customers and buyers. These efforts are in various stages of completion, and it is too early to assess their results."

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Government Accountability Office Reports

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the U.S. Congress investigating how the federal government spends taxpayers' money. Its goal is to increase accountability and improve the performance of the federal government. The Government Accountability Office Reports Collection consists of over 13,000 documents on a variety of topics ranging from fiscal issues to international affairs.

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  • March 28, 2002

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  • June 11, 2014, 5:03 a.m.

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United States. General Accounting Office. Defense Acquisitions: Status of Defense Logistics Agency's Efforts to Address Spare Part Price Increases, report, March 28, 2002; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc295279/: accessed December 12, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.