Summary: In response to a congressional request, GAO provided information on the Department of Defense's (DOD) progress in implementing its spare parts initiatives, specifically spare parts acquisition at the San Antonio Air Logistics Center, including: (1) information on price growth; (2) an evaluation of the adequacy of the price analysis procurement officials perform; (3) an assessment of the personnel changes made in response to the initiatives; and (4) ways to improve implementing selected initiatives.
GAO found that, since its previous review: (1) there was an 18.9-percent increase in procurements with decreased or unchanged prices, a decrease in procurements with higher prices, and a decrease of 48 percent in procurements with price increases of 25 percent or more; (2) the changes in spare parts prices were probably the result of lower inflation, economic improvement, and adverse media publicity; (3) procurement officials have improved their price analyses, but there is room for further improvement since price growths of 25 percent or more should prompt close scrutiny; and (4) in response to the spare parts initiatives, Air Force procurement officials shifted the emphasis from productivity to quality price analyses, hired and trained additional personnel, and revised performance appraisals to emphasize quality of pricing and competitive procurement. GAO also found that the Voluntary Refund Program and purchase request consolidation for items purchased repetitively are areas that need improvement to better achieve the intent of the spare parts initiatives.
