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Defense Inventory: Extent of Diminishing Manufacturing Sources Problems Still Unknown

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Report Type Reports and Testimonies
Report Date April 21, 1995
Report No. NSIAD-95-85
Subject
Summary:

The Pentagon believes that diminishing manufacturing sources is a major problem, particularly in the electronics and microcircuit areas. According to industry sources and Defense Department (DOD) officials, because of rapidly changing technology in the electronics and microcircuit industry, decreasing demands due to military downsizing, and DOD increasing use of commercial off-the-shelf items, the private sector is increasingly more sensitive to its commercial customers than DOD. As a result, DOD expects the availability of DOD specification items to decrease and manufacturing sources to diminish. This report discusses (1) DOD's progress since GAO's August 1990 report (GAO/NSIAD-90-126) toward implementing a Diminishing Manufacturing Sources and Material Shortages program and (2) whether DOD has determined the cost-effectiveness of the actions taken to resolve diminishing manufacturing sources.

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