Summary: Because of problems experienced with its maintenance support program at district offices, the Coast Guard established the Ships Inventory Control Point at Curtis Bay, Maryland, as a central logistics manager.
GAO found that the Control Point is not yet an effective manager. In order to adequately support their own vessel maintenance needs, the district offices have reverted to individual, uneconomical support systems which adversely affect the total system. Some districts maintain intermediate inventories contrary to Coast Guard policy, and districts are not sharing parts. Because each district hoards its own inventory, the Coast Guard has more inventory of some parts than requirements warrant. Much of the Control Point's inventory is not in ready-for-issue condition because the districts lack incentives to properly repair parts before returning them to stock, there are no systemwide repair specifications, and quality assurance programs are lacking or inadequate. As a result, the Coast Guard incurs additional repair and inspection costs before parts can be used and experiences some delays in getting vessels back in service. The Control Point lacks the management information it needs to improve as the central logistics manager. Because it has been unable to fill districts' requests, the districts procure many items commercially without going through or informing the Control Point. The Coast Guard could reduce its maintenance costs by making greater use of other agencies' maintenance facilities. Government regulations require that, before agencies procure services commercially, they should first determine if interservice support potential exists.
