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NCJ Number: 67393 Add to Shopping cart Find in a Library
Title: NAVY MATERIAL HANDLING EQUIPMENT COSTS CAN BE REDUCED
Author(s): ANON
Corporate Author: US Government Accountability Office
United States of America
Date Published: 1980
Page Count: 30
Sponsoring Agency: US Government Accountability Office
Washington, DC 20548
Sale Source: US Government Accountability Office
441 G Street, NW
Washington, DC 20548
United States of America
Language: English
Country: United States of America
Annotation: THIS REPORT DISCUSSES WAYS IN WHICH THE NAVY CAN REDUCE MAINTENANCE AND REPLACEMENT COSTS OF MATERIAL HANDLING EQUIPMENT BY MORE EFFICIENT MANAGEMENT AND UTILIZATION OF EQUIPMENT.
Abstract: DURING THE REVIEW OF FIVE NAVY ACTIVITIES, THE GENERAL ACCOUNTING OFFICE (GAO) ESTIMATED THAT ELIMINATION OF UNNEEDED EQUIPMENT, ESTABLISHMENT OF REASONABLE EQUIPMENT ALLOWANCES, AND EFFICIENT USE OF NEEDED EQUIPMENT WOULD SAVE $5.3 MILLION IN FUTURE REPLACEMENT COSTS AND WOULD SUBSTANTIALLY REDUCE ANNUAL MAINTENANCE AND REPAIR COSTS. AS OF DECEMBER 1, 1978, THE NAVY HAD 14,813 ITEMS OF MATERIAL HANDLING EQUIPMENT WHICH HAD COST $118 MILLION. APPROXIMATELY $9.9 MILLION WORTH OF THE EQUIPMENT WAS MORE THAN THE NAVY'S AUTHORIZED ALLOWANCES. THE NAVY PLANS TO SPEND MORE THAN $141 MILLION DURING FISCAL YEARS 1980 THROUGH 1984 TO REPLACE MUCH OF THIS EQUIPMENT. THE STUDY FOUND THAT MUCH OF THE MATERIAL HANDLING EQUIPMENT IS UNDERUSED, ALMOST ALL OF THE EQUIPMENT QUALIFIES FOR DISPOSAL BASED ON AGE, AND NAVY ACTIVITIES ARE INCURRING MILLIONS OF DOLLRS TO REPLACE AND REPAIR UNNEEDED EQUIPMENT. GAO RECOMMENDS THAT THE SECRETARY OF DEFENSE DIRECT THE NAVY TO ESTABLISH REALISTIC USAGE STANDARDS FOR THE EQUIPMENT; REDISTRIBUTE EXCESS EQUIPMENT WITHIN THE NAVY OR TRANSFER IT TO THE DEFENSE PROPERTY DISPOSAL SERVICE FOR REUTILIZATION SCREENING OR DISPOSAL, AND ESTABLISH CONTROLS AT A HIGH ENOUGH MANAGEMENT LEVEL TO ENSURE THAT ALL RECOMMENDATIONS MADE BY THE NAVAL AUDIT SERVICE AND CONCURRED IN BY THE AFFECTED ACTIVITIES ARE PROMPTLY AND EFFECTIVELY CARRIED OUT. TABLES ARE INCLUDED. RELATED MATERIALS ARE APPENDED. (AUTHOR ABSTRACT MODIFIED--PRG)
Index Term(s): Costs; Efficiency; Equipment maintenance and storage; Federal government; Management; US Armed Forces; US Department of Defense; US Government Accountability Office (GAO)
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=67393

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