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Navy Supply: Procurement Leadtime Forecasting Needs Improvement

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Report Type Reports and Testimonies
Report Date May 18, 1990
Report No. NSIAD-90-78
Subject
Summary:

Pursuant to a congressional request, GAO reviewed the Navy's process for determining procurement lead-time requirements.

GAO found that: (1) the Navy Aviation Supply Office (ASO) either overstated or understated lead-time requirements in over 35 percent of the cases GAO analyzed; (2) ASO did not always base lead-time requirements on actual experience; (3) ASO arbitrarily added 9 months to its lead-time standard because it had available funds; (4) ASO rejected as baseline data those actual lead times that widely diverged from data on file; (5) ASO did not routinely obtain or compare contractor lead-time estimates; (6) ASO overstated lead-time requirements for 17 items by $2.2 million and understated lead-time requirements for 4 items by $43,000; and (7) the records ASO used to determine lead-time requirements were inaccurate.

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