```

                                                                 
Defense Inventory: Trends in Services' Spare Parts Purchased from
the Defense Logistics Agency (30-APR-02, GAO-02-452).		 
                                                                 
The Defense Logistics Agency (DLA) reported that a shortage of	 
spare parts has caused a decline in the military services'	 
readiness, particularly in aviation readiness. In response,	 
Congress provided $1.1 billion in additional funding to purchase 
spare parts. According to DLA, shortages are a result of aging	 
systems and high operational tempo, which increase the total	 
number of spare parts required. The number of spare parts the	 
military services ordered declined between 1996 and 2000, but the
dollar value increased by 18 percent. Further, spare parts	 
purchased were drawn from 70 of 78 stock groups. Defense	 
officials told GAO that military downsizing was the primary	 
reason for the decline and that credit card usage and contractor 
maintenance support also contributed. The reasons cited for the  
increase were (1) DLA shifts to a mix of more expensive spare	 
parts and (2) price increases due to inaccurate initial price	 
estimates, long periods between procurements, and substantial	 
changes in the quantity of spare parts purchased.		 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-02-452 					        
    ACCNO:   A02873						        
  TITLE:     Defense Inventory: Trends in Services' Spare Parts       
Purchased from the Defense Logistics Agency			 
     DATE:   04/30/2002 
  SUBJECT:   Spare parts					 
	     Military procurement				 
	     Prices and pricing 				 
	     DOD Defense Working Capital Fund			 

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GAO-02-452
     
Report to Congressional Requesters

United States General Accounting Office

GAO

April 2002 DEFENSE INVENTORY

Trends in Services? Spare Parts Purchased from the Defense Logistics Agency

GAO- 02- 452

Page i GAO- 02- 452 Defense Inventory Letter 1

Results in Brief 2 Background 2 Quantities of Spare Parts Purchased
Declined, but Dollar Value of

Sales Increased 4 Agency Comments 14 Scope and Methodology 15

Appendix I Selected Aviation- Related Federal Stock Classes 16

Appendix II Comments from the Department of Defense 17

Related GAO Products 18

Tables

Table 1: Reported Dollar Value of Defense Logistics Agency Spare Parts Sales
to the Services 10 Table 2: Average Prices and Proportions of Transferred
Spare Parts 10 Table 3: Top 10 Groups of Spare Parts Sold by Defense
Logistics

Agency to Services 12 Table 4: Spare Parts Supplied by Defense Logistics
Agency?s Lead

Aviation Supply Center 13 Table 5: Reported Dollar Value of Spare Parts
Supplied by Defense

Logistics Agency?s Lead Aviation Supply Center 13

Figures

Figure 1: Total Number of Spare Parts the Defense Logistics Agency Sold to
the Services 5 Figure 2: Spare Parts Sold by the Defense Logistics Agency to
the

Air Force 6 Figure 3: Spare Parts Sold by the Defense Logistics Agency to
the

Army 7 Figure 4: Spare Parts Sold by the Defense Logistics Agency to the

Navy 8 Contents

Page ii GAO- 02- 452 Defense Inventory

Figure 5: Spare Parts Sold by the Defense Logistics Agency to the Marine
Corps 9

Page 1 GAO- 02- 452 Defense Inventory

April 30, 2002 The Honorable Bill Young Chairman, Committee on
Appropriations House of Representatives

The Honorable Jerry Lewis Chairman, Subcommittee on Defense Committee on
Appropriations House of Representatives

In recent years, the Department of Defense has reported that a shortage of
spare parts has caused a decline in the military services? readiness,
particularly in the area of aviation readiness. In response, the Congress
provided at least $1.1 billion in additional funding earmarked to purchase
spare parts. However, as of September 2001, the department continued to
report a shortage of spare parts. According to the department, shortages are
a result of aging systems and high operational tempo, 1 which increase the
total number of spare parts required.

You asked us to provide information on the spare parts the military services
buy from the Defense Logistics Agency, a defense organization that supplies
some spare parts to the services. In response, we are issuing this report to
present available trend information on the quantities, reported dollar
value, and types of spare parts that each military service ordered and
reported as shipped from the Defense Logistics Agency over the past 5 years.
We are also issuing similar information specifically on aviation- related
spare parts because the services have highlighted a shortage of these as a
particular readiness concern. This report is one in a series that deals with
concerns you have raised about shortages of spare parts. 2

It is important to note that the results presented in this report are based
on unaudited data supplied by the Defense Logistics Agency and that our
financial statement audit work has repeatedly shown that the Department of
Defense?s financial data and underlying inventory records are generally not
reliable. However, it is the only data readily available. Also, because

1 The number and length of deployments. 2 A list of related GAO reports is
at the end of this report.

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 02- 452 Defense Inventory

millions of individual federal stock numbers are used to identify types of
parts/ stocks, we consolidated data for this report by year, service, agency
supply center, federal stock group, or federal stock class. Lastly, in a
separate recent report, 3 we assessed the Defense Logistics Agency?s efforts
to control spare part price increases.

The number of spare parts that the military services ordered from the
Defense Logistics Agency steadily declined from fiscal years 1996 through
2000; the reported dollar value of spare parts increased overall; and the
types of spare parts purchased were drawn from 70 of 78 stock groups.
Specifically, the total number of spare parts supplied annually by the
Defense Logistics Agency to the services declined about 24 percent during
fiscal years 1996- 2000. Defense officials told us that military downsizing
was the primary reason for the decline and that credit card usage and
contractor maintenance support were also contributing factors. The total
reported value of Defense Logistics Agency spare part sales to the services
increased by about 18 percent from fiscal years 1996 through fiscal year
2000. The reasons cited for the dollar value increase were (1) Defense
Logistics Agency?s shift to a mix of more expensive spare parts and (2)
price increases due to inaccurate initial price estimates, long periods
between procurements, and/ or substantial changes in the quantity of spare
parts purchased. Individual services had different spare parts leading their
lists of purchases in fiscal year 2000: The highest reported dollar value of
sales to the Navy was for electrical and electronic equipment components;
for the Air Force it was engines, turbines, and associated components; for
the Army and the Marine Corps, it was vehicle equipment components.

Defense Logistics Agency data indicates similar trends for aviation- related
spare parts. The number of these spare parts that the agency sold to the
services declined 28 percent in fiscal years 1996- 2000, while the total
value of sales from the agency?s lead aviation supply center to the services
increased about 54 percent during the same period.

Spare parts are defined as repair parts and components, including kits,
assemblies, and subassemblies required for the maintenance of all

3 U. S. General Accounting Office, Defense Acquisitions: Status of Defense
Logistics Agency?s Efforts to Address Spare Part Price Increases, GAO- 02-
505 (Washington, D. C.: Apr. 8, 2002). Results in Brief

Background

Page 3 GAO- 02- 452 Defense Inventory

equipment. Repair parts and components can include (1) reparable items,
which are returned to the supply system to be repaired when they are no
longer in working condition, and (2) nonreparable items, also called
consumables, which are often used in repairing the reparable items because
they cannot be economically repaired themselves. For example, a screw (a
consumable) may be used in repairing a landing gear component (a reparable).

The Defense Logistics Agency, headquartered at Fort Belvoir, Virginia,
provides consumable supplies and spare parts to the military services, the
Department of Defense, federal civilian agencies, and selected foreign
governments. As part of its mission, the agency manages over 4.1 million
consumable items. The vast majority of these items are considered consumable
spare parts, and the remaining items include medicine, food, clothing, and
fuel. Spare parts managed by the agency range from low- cost, commonly used
items, such as fasteners and gaskets, to high- priced, sophisticated items,
such as microswitches, miniature components, and precision valves vital to
operating major weapon systems.

The agency?s supply management operations are funded through the Defense-
Wide Working Capital Fund, which operates as a revolving fund. The agency
buys and sells spare parts to customers, who use appropriated funds to pay
the agency. Sales receipts are then used to purchase additional items to
meet new customer demand. In principle, the agency should recover the
acquisition cost of the spare parts it sells, as well as its own operating
costs, so that over the long term the fund breaks even financially.

The Defense Supply Center in Richmond, Virginia, is designated as the
Defense Logistics Agency?s lead center for air/ aviation systems. The
Defense Supply Center in Columbus, Ohio, is the designated lead center for
land and sea/ subsurface (maritime) systems. The Defense Supply Center in
Philadelphia, Pennsylvania, is the lead center for troop support systems and
general supply.

Page 4 GAO- 02- 452 Defense Inventory

Over the past 5 years, the number of spare parts the services purchased from
the Defense Logistics Agency declined by about 24 percent, from 353 million
in fiscal year 1996 to about 270 million in fiscal year 2000. However, the
dollar value 4 of spare parts obtained during the same period increased from
$3.9 billion in fiscal year 1996 to $4.6 billion in fiscal year 2000 (about
18 percent). Electrical and electronic equipment components accounted for
the highest proportion of total dollar value. The services acquired spare
parts from 70 of the 78 federal stock groups. In commenting on a draft of
this report, the department attributed the increased dollar value of sales
to the increased value of items managed by the Defense Logistics Agency.
This is clearly a contributing factor. However, at the same time as we
recently reported, 5 the Defense Logistics Agency has a number of actions
underway to control spare part prices.

Defense Logistics Agency data indicates that every year from 1996 to 2000,
the agency supplied the services with smaller quantities of spare parts,
from a total of about 353 million in fiscal year 1996 to about 270 million
in fiscal year 2000, a decrease of about 24 percent (see fig. 1). The number
of spare parts the services ordered also decreased about 19 percent during
the period, from about 348 million to about 283 million. 6

4 Dollar values for spare parts used in this report are based on standard
prices. 5 See GAO- 02- 505. 6 The 283 million parts ordered in 2000 exceeded
the 270 million supplied because orders were sometimes placed in one year
but were backordered and not supplied until later, sometimes in another
year. Quantities of Spare

Parts Purchased Declined, but Dollar Value of Sales Increased

Number of Spare Parts Supplied to Military Services Declined

Page 5 GAO- 02- 452 Defense Inventory

Figure 1: Total Number of Spare Parts the Defense Logistics Agency Sold to
the Services

Source: Defense Logistics Agency data.

Defense Logistics Agency officials cited three main reasons for the decline:
increased credit card usage, increased contractor maintenance support, and-
primarily- military downsizing. The downsizing, which began in the early
1990s, continued through 2000. According to defense figures, 7 the total
number of active duty Navy fighter and attack aircraft declined from 504 in
fiscal year 1996 to 432 in fiscal year 2000. Similarly, the number of ships
(or ship battle forces) declined from 355 to 318.

7 Department of Defense force structure tables are appended to the secretary
of defense?s annual report to the president and the Congress and provide
summary trend analyses of various military weapon systems.

Page 6 GAO- 02- 452 Defense Inventory

However, the number of Air Force fighter and attack aircraft remained steady
at 936 during the period.

As shown in figure 2, the number of spare parts sold by the Defense
Logistics Agency to the Air Force dropped by about 23 million from about 137
million in fiscal year 1996 to about 114 million in fiscal year 2000, a 17
percent decrease. During this time, the Air Force increased the percentage
of depot maintenance repair workload performed by the private sector. The
other services also increased private sector depot maintenance performance,
but to a lesser extent than the Air Force.

Figure 2: Spare Parts Sold by the Defense Logistics Agency to the Air Force

Source: Defense Logistics Agency data.

Air Force

Page 7 GAO- 02- 452 Defense Inventory

Figure 3 shows that in fiscal year 1996, the Defense Logistics Agency sold
the Army about 96 million spare parts, but by fiscal year 2000, that number
had dropped to about 78 million, a decline of 18 million, or 19 percent.

Figure 3: Spare Parts Sold by the Defense Logistics Agency to the Army

Source: Defense Logistics Agency data.

Army

Page 8 GAO- 02- 452 Defense Inventory

Figure 4 indicates that in fiscal year 1996, the Navy obtained about 110
million spare parts from the Defense Logistics Agency, but in fiscal year
2000 it bought only about 72 million spare parts, a decrease of about 38
million, or 35 percent.

Figure 4: Spare Parts Sold by the Defense Logistics Agency to the Navy

Source: Defense Logistics Agency data.

Navy

Page 9 GAO- 02- 452 Defense Inventory

As shown in figure 5, the Marine Corps purchased about 6 million spare parts
from the agency in fiscal year 2000, about 45 percent less than the
approximately 11 million it had purchased in fiscal year 1996.

Figure 5: Spare Parts Sold by the Defense Logistics Agency to the Marine
Corps

Source: Defense Logistics Agency data.

The reported dollar value of the Defense Logistics Agency?s annual sale of
spare parts to the services rose about 18 percent over the past 5 years,
increasing from about $3.9 billion in fiscal year 1996 to about $4.6 billion
in fiscal year 2000. The dollar value of ordered spare parts increased from
about $3.9 billion to about $5.2 billion (about 25 percent). The reasons
cited for the dollar value increase were (1) Defense Logistics Agency?s
shift to a mix of more expensive spare parts and (2) price increases due to
inaccurate initial price estimates, long periods between procurements, and/
or substantial changes in the quantity of spare parts purchased. When
disaggregated by service, the agency?s data indicates some variation in this
Marine Corps

Reported Dollar Value of Defense Logistics Agency Part Sales Increased

Page 10 GAO- 02- 452 Defense Inventory

trend. The dollar value of sales to the Air Force increased every year,
while the annual sale value of spare parts to the Army, the Navy, and the
Marine Corps fluctuated. Table 1 shows the overall increase as well as the
annual fluctuations.

Table 1: Reported Dollar Value of Defense Logistics Agency Spare Parts Sales
to the Services

Dollars in millions

Fiscal year Air Force Army Navy Marine Corps Total

1996 $1.331 $0.930 $1.551 $0.110 $3.923

1997 1.427 1.014 1.534 0.121 4.096

1998 1.601 0.964 1.658 0.105 4.329

1999 1.713 0.990 1.638 0.109 4.451

2000 1.811 1.052 1.682 0.092 4.637

Source: Defense Logistics Agency data.

During the 1996- 2000 period, the Department of Defense transferred the
management of more costly, complex, and sophisticated spare parts to the
Defense Logistics Agency. Department officials indicated that the dollar
value of the items transferred was significantly higher than the items being
managed by the Defense Logistics Agency until that time. The items
transferred from the services represented a higher percentage of the total
inventory held by the agency, therefore contributing to the higher dollar
value of spare parts sold to the services. Table 2 shows the average prices
of the spare parts transferred as compared to those for spare parts not
transferred and the prices for all spare parts sold to the services. The
table also indicates the percentages of the total inventory that consisted
of transferred spare parts during the 1996- 2000 period.

Table 2: Average Prices and Proportions of Transferred Spare Parts 1996 1997
1998 1999 2000

Average prices of parts not transferred $7.87 $8.29 $9.04 $9.64 $10.46
Average prices of parts transferred 59.59 56.82 63.97 67.51 69.17 Average
prices of all parts sold to the services 11.10 12.11 14.39 15.83 17.18
Transferred parts as a percentage of total inventory 34 37 43 46 46

Source: Defense Logistics Agency data.

Although the price of some spare parts has increased significantly, for most
spare parts it has not. In November 2000, we reported that prices of

Page 11 GAO- 02- 452 Defense Inventory

about 70 percent of spare parts requisitioned by the agency?s customers
increased less than 5 percent a year during the 1989- 98 period. 8 This
trend applied to all requisitioned spare parts, including those in frequent
demand and aircraft- related spare parts. However, the prices of a
relatively small number of spare parts did increase significantly- by 50
percent or more.

The spare part prices increased for a number of reasons. The majority of the
agency?s weapon system spare parts experienced a relatively low annual price
change- less than 5 percent- from fiscal years 1989 through 1998. Most of
the extreme price increases were due to inaccurate price estimates, outdated
prices, or changes in quantities purchased. In other cases, prices increased
significantly when long time periods- sometimes decades- passed between
procurements. Agency purchasing officials cited other factors that can lead
to price increases, including retooling of production lines between
purchases, emergency procurements, and increases in the costs of raw
materials. An Air Force official said that new technology also increased the
cost as older aircraft were retrofitted with a new mix of more expensive
spare parts to add capability.

The services obtained spare parts from 70 of 78 federal stock groups over
the past 5 years. In fiscal year 2000, electrical and electronic equipment
components were the spare parts with the highest sales (in dollar value).
However, different groups of spare parts led sales within each service
during fiscal year 2000: Electrical and electronic equipment components led
Defense Logistics Agency sales to the Navy; engine and turbine components
led sales to the Air Force; and vehicular equipment components led sales to
the Army and the Marine Corps.

Although the same groups of spare parts remained among the top 10 (in terms
of reported dollar value) over the 5- year period, the rankings of some
groups and the amounts of money spent on each one varied. For example,
engines, turbines, and components ranked fifth for the Air Force in fiscal
year 1996 but moved to first place in fiscal year 2000. Table 3 shows the
top 10 groups for fiscal years 1996 and 2000.

8 U. S. General Accounting Office, Defense Acquisitions: Price Trends for
Defense Logistics Agency?s Weapon System Parts, GAO- 01- 22 (Washington, D.
C.: Nov. 3, 2000). Types of Spare Parts the

Services Acquired from Defense Logistics Agency

Page 12 GAO- 02- 452 Defense Inventory

Table 3: Top 10 Groups of Spare Parts Sold by Defense Logistics Agency to
Services

Dollars in millions

Air Force Army Navy Marine Corps Part group Rank Price Rank Price Rank Price
Rank Price

Engines, turbines, and components 1 (5) $274.6 2 $175.9 (9) Electrical and
electronic equipment components 2 (1) 234.7 3 (3) $124.8 1 (1) 270.6 3 (2)
$11.4 Hardware and abrasives 3 (2) 231.7 2 (1) 136.9 3 (2) 166.4 2 (3) 12.7
Aircraft and airframe structural components 4 (3) 174.8 10 (10) 32.8 7 (8)
76.0 Aircraft components and accessories 5 (4) 161.4 7 (6) 41.8 4 (3) 143.9
Vehicular equipment components 1 (2) 157.3 1 (1) 15.5 Valves 5 (6) 91.8
Instruments and laboratory equipment 6 (6) 83.7 9 (8) 36.1 6 (4) 87.1 (10)
Engine accessories 7 (9) 82.1 5 (4) 58.6 5 (5) 5. 2 Electric wire and power
and distribution equipment 8 (7) 80.3 4 (5) 59.7 8 (5) 75.5 4 (4) 5. 7 Pipe,
tubing, hose, and fittings 9 (8) 78.6 8 (7) 38.9 9 (7) 73.4 6 (7) 5. 1 Pumps
and compressors 10 (9) 70.2 Bearings 10 (10) 64.3 (10) Textiles, leather,
furs, apparel and shoe findings, tents, and flags a 6 (9) 44.8 10 (8) 2. 7
Mechanical power transmission equipment 7 (6) 3. 5 Chemicals and chemical
products 8 3. 5 Weapons 9 3. 2

Note: Numbers in parentheses represent fiscal year 1996 ranking. a The
majority of the funds were used for tents and tarpaulins, which include tent
pegs, tent poles, and multiple purpose covers, not for permanent
installation. Source: Defense Logistics Agency data.

The trends for aviation spare parts were consistent with those for the total
spare parts supplied to the services. The Defense Logistics Agency?s lead
supply center 9 for aviation reported that the dollar value of annual sales
to the services increased about 54 percent from fiscal year 1996 to fiscal
year 2000, even though the center sold 28 percent fewer spare parts.
Officials stated that the increases were caused in part by the Defense
Logistics Agency?s shift to a mix of more expensive spare parts and
increases in the price of aviation spare parts. Because our review covered
only classes of

9 The Defense Logistics Agency realigned its centers following a ?Lead
Center Concept? in fiscal years 1996- 99. A lead center now provides a
single weapon or troop support system point of contact at the system program
level within the Defense Logistics Agency. Number of Aviation Spare

Parts Declined, but Dollar Value Increased

Page 13 GAO- 02- 452 Defense Inventory

spare parts, not individual items, we did not determine the extent to which
the agency had changed the prices of individual spare parts. However, we
recently reported on the Defense Logistics Agency?s efforts to identify and
address price increases of spare parts and their causes. 10 Tables 4 and 5,
respectively, show the number of spare parts supplied and the reported
dollar value of sales by the agency?s lead aviation supply center to each of
the services from fiscal years 1996 through 2000.

Table 4: Spare Parts Supplied by Defense Logistics Agency?s Lead Aviation
Supply Center

Fiscal year Air Force Army Marine

Corps Navy Total

1996 14,046,321 13,383,051 1, 598,506 16,158,692 45,186,570

1997 15,716,582 11,971,084 1, 669,372 15,314,262 44,671,300

1998 14,215,374 8, 448,734 951,173 11,141,055 34,756,336

1999 15,545,724 8, 010,190 762,538 9,212, 745 33,531,197

2000 15,292,605 7, 964,165 586,483 8, 731,192 32,574,445

Source: Defense Logistics Agency data.

Table 5: Reported Dollar Value of Spare Parts Supplied by Defense Logistics
Agency?s Lead Aviation Supply Center

Dollars in millions

Fiscal year Air Force Army Marine

Corps Navy Total

1996 $519.7 $253.4 $24.6 $481.8 $1,279.5

1997 605.3 269.4 24.7 490.5 1,389.9

1998 732.3 248.8 19.0 587.8 1,587.9

1999 912.5 261.4 23.4 674.5 1,871.8

2000 982.7 262.9 17.4 711.3 1,974.3

Source: Defense Logistics Agency data.

10 See GAO- 02- 505.

Page 14 GAO- 02- 452 Defense Inventory

We judgmentally selected 10 aviation- related federal stock classes 11 and
found mixed purchasing trends during the study period:

 The Navy purchased substantially more spare parts in 3 of the 10 classes-
components for jet engines, airframes, and wheel and brake systems. Engine
parts accounted for over 60 percent of total spare parts purchased in the 10
classes. The Navy purchased fewer parts in the other seven classes of which
three decreased by one- third or more.

 Over one- third of the spare parts the Army purchased in the 10 classes
were for aircraft structural components. Overall, the quantities purchased
increased for seven classes and declined for the other three. Annual
purchases fluctuated in all classes.

 Similarly to the Navy, the Air Force purchased over 64 percent of spare
parts in the 10 selected classes for engine parts. Overall, the Air Force
increased its purchases in eight classes and decreased purchases in the
others. Spare parts purchased for wheel and brake systems increased by over
703 percent from fiscal year 1996 to fiscal year 2000. Spare parts for
engines and fuel systems increased by about 95 percent. Yearly purchases
fluctuated in all classes.

 The Marine Corps purchased fewer than 1,600 spare parts a year from the 10
classes. The total number of spare parts purchased fluctuated from a low of
612 in fiscal year 1999 to a high of 1,574 in fiscal year 2000. Over half of
spare parts purchased in all 10 classes were for airframe structural
components.

The total amounts charged by the agency for spare parts generally increased,
even in those classes where the number of spare parts purchased decreased.

In written comments on a draft of this report, the Department of Defense
generally concurred with its contents. The department also provided
technical comments, which we have incorporated where appropriate. The
department?s written comments appear in appendix II.

11 The 10 classes were airframe structural components; helicopter rotor
blades, drive mechanisms, and components; aircraft landing gear components;
aircraft wheel and brake systems; aircraft gas turbine and jet engines;
aircraft and missile engine fuel system components; aircraft engine
electrical system components; airborne radio navigation equipment; airborne
radar equipment; and flight instruments. A description of what is included
in each of the 10 selected classes is provided in appendix I. Agency
Comments

Page 15 GAO- 02- 452 Defense Inventory

To obtain information on trends in the quantity, reported dollar value,
demand, and kinds of spare parts, including aviation- related spare parts,
which the services bought from the Defense Logistics Agency, we asked agency
officials to supply the relevant data. The officials determined which items
to include in the spare part category and developed the information for us
by year, service, service center, and federal stock class. The officials
provided data on the aggregate numbers of spare parts. We did not attempt to
independently verify the agency?s information, nor did we verify the reasons
for changes in trends. Defense Logistics Agency officials told us that in
compiling their data, they used how spare parts were defined in the
Integrated Consumable Item Support Model and by the Army in purchasing
parts. For sales data, they used the standard unit price, which includes the
cost recovery rate (the Defense Logistics Agency surcharge) at the time of
sale.

We performed our review from July 2001 through April 2002 in accordance with
generally accepted government auditing standards.

We are sending copies of this report to the appropriate congressional
committees, the secretary of defense, the secretary of the army, the
secretary of the air force, the secretary of the navy, the commandant of the
Marine Corps, the director of the Defense Logistics Agency, and the director
of the Office of Management and Budget.

Please contact me on (202) 512- 8412 if you or your staff have any questions
regarding this report. Key contributors to this report were Jeanett H. Reid,
George Morse, and Lawson Gist, Jr.

David R. Warren Director, Defense Capabilities and Management Scope and

Methodology

Appendix I: Selected Aviation- Related Federal Stock Classes

Page 16 GAO- 02- 452 Defense Inventory

Name Description

Airframe structural components Includes fabricated system parts that are
permanently attached or peculiar to the integral airframe of an aircraft,
such as support structural components, spars, ribs, ailerons, stabilizers,
and bulkheads Helicopter rotor blades, drive mechanisms, and components
Includes miscellaneous components specifically designed for, and used

exclusively in, helicopter drive mechanisms and rotor blades when not
classified elsewhere in the federal supply class index Aircraft landing gear
components Includes shock struts and components; installation elements such
as

torsion bars, vibration links, and drag struts; landing gear trunions; axles
and shimmy dampeners; and specially designed hydraulic power steering system
components Aircraft wheel and brake systems Includes skis, floats, tracks,
landing wheel skid detectors, valves

designed specifically for use with hydraulic or pneumatic wheel and brake
systems, and helicopter rotor brake system components Aircraft gas turbines
and jet engines Engines and components intended for use on aircraft and /or
guided

missile prime movers; includes compressor and turbine rotor blades,
combustion chamber, accessory gearbox, afterburner, exhaust cone, hydraulic
reservoirs, and oil tanks Aircraft and missile engine fuel system components
Fuel components specially designed for aircraft and missile propulsion;

includes carburetors, fuel pumps, engine fuel filters, jet engine fuel
controls, water injection controls and valves, fuel flow regulators, and
components of smoke abatement systems Aircraft engine electrical system
components Items designed for specific use on aircraft and guided missile
prime

movers; includes magnetos, spark plugs, ignition coils, ignition
distributors, engine voltage regulators, ignition harness assemblies,
starting motors for engines, and engine accessory generators Airborne radio
navigation equipment Includes Loran equipment, Shoran equipment, and
direction finding

equipment Airborne radar equipment Includes airborne radar assemblies and
subassemblies except those

designed specifically for use with fire control equipment or guided missiles
Flight instruments Includes air speed indicators, rate of climb indicators,
bank and turn

indicators, and horizon and altitude indicators Source: Defense Logistics
Agency.

Appendix I: Selected Aviation- Related Federal Stock Classes

Appendix II: Comments from the Department of Defense Page 17 GAO- 02- 452
Defense Inventory

Appendix II: Comments from the Department of Defense

Related GAO Products Page 18 GAO- 02- 452 Defense Inventory

Army Inventory: Parts Shortages Are Impacting Operations and Maintenance
Effectiveness. GAO- 01- 772. Washington, D. C.: July 31, 2001.

Navy Inventory: Parts Shortages Are Impacting Operations and Maintenance
Effectiveness. GAO- 01- 771. Washington, D. C.: July 31, 2001.

Air Force Inventory: Parts Shortages Are Impacting Operations and
Maintenance Effectiveness. GAO- 01- 587. Washington, D. C.: June 27, 2001.

Defense Inventory: Information on the Use of Spare Parts Funding Is Lacking.
GAO- 01- 472. Washington, D. C.: June 11, 2001.

Defense Inventory: Army War Reserve Spare Parts Requirements Are Uncertain.
GAO- 01- 425. Washington, D. C.: May 10, 2001.

Major Management Challenges and Program Risks: Departments of Defense,
State, and Veterans Affairs. GAO- 01- 492T. Washington, D. C.: March 7,
2001.

Major Management Challenges and Program Risks: A Government- wide
Perspective. GAO- 01- 241. Washington, D. C.: January 2001.

High- Risk Series: An Update. GAO- 01- 263. Washington, D. C.: January 2001.

Defense Acquisitions: Prices of Navy Aviation Spare Parts Have Increased.
GAO- 01- 23. Washington, D. C.: November 6, 2000.

Defense Acquisitions: Price Trends for Defense Logistics Agency?s Weapon
System Parts. GAO- 01- 22. Washington, D. C.: November 3, 2000.

Contingency Operations: Providing Critical Capabilities Poses Challenges.
GAO/ NSIAD- 00- 164. Washington, D. C.: July 6, 2000.

Defense Inventory: Process for Canceling Inventory Orders Needs Improvement.
GAO/ NSIAD- 00- 160. Washington, D. C.: June 30, 2000.

Defense Inventory: Opportunities Exist to Expand the Use of Defense
Logistics Agency Best Practices. GAO/ NSIAD- 00- 30. Washington, D. C.:
January 26, 2000.

Defense Inventory: Improvements Needed to Prevent Excess Purchases by the
Air Force. NSIAD- 00- 5. Washington, D. C.: November 10, 1999. Related GAO
Products

Related GAO Products Page 19 GAO- 02- 452 Defense Inventory

Defense Inventory: Management of Repair Parts Common to More Than One
Military Service Can Be Improved. GAO/ NSIAD- 00- 21. Washington, D. C.:
October 20, 1999.

Military Operations: Some Funds for Fiscal Year 1999 Contingency Operations
Will Be Available for Future Needs. GAO/ NSIAD- 99- 244BR. Washington, D.
C.: September 21, 1999.

Department of Defense: Status of Financial Management Weaknesses and Actions
Needed to Correct Continuing Challenges.

GAO/ T- AIMD/ NSIAD- 99- 171. Washington, D. C.: May 4, 1999.

Defense Inventory: DOD Could Improve Total Asset Visibility Initiative With
Results Act Framework. GAO/ NSIAD- 99- 40. Washington, D. C.:

April 12, 1999.

Defense Reform Initiative: Organization, Status, and Challenges.

GAO/ NSIAD- 99- 87. Washington, D. C.: April 21, 1999.

Defense Inventory: Status of Inventory and Purchases and Their Relationship
to Current Needs. GAO/ NSIAD- 99- 60. Washington, D. C.: April 16, 1999.

Defense Inventory: Continuing Challenges in Managing Inventories and
Avoiding Adverse Operational Effects. GAO/ T- NSIAD- 99- 83. Washington, D.
C.: February 25, 1999.

High- Risk Series: An Update. GAO/ HR- 99- 1. Washington, D. C.: January
1999.

Major Management Challenges and Program Risks: Department of Defense. GAO/
OCG- 99- 4. Washington, D. C.: January 1999.

(350099)

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