Audit of the Reliability of Army Spare Parts Forecasts Submitted to the Defense Logistics Agency

Submitting OIG:

Department of Defense OIG

Date Issued:

Wednesday, September 20, 2023

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2023-123

Component, if applicable:

Defense Logistics Agency (DLA)

Under Secretary of Defense for Acquisition and Sustainment

United States Air Force (USAF)

United States Army (USA)

United States Marine Corps (USMC)

United States Navy (USN)

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
DODIG-2023-123.pdf	3.14 MB

Recommendation Number	Recommendation Status	Significant Recommendation
D-2023-0123-D000AX-0001-0001	Open	No
Rec. 1: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should evaluate the number and value of items forecasted, resources involved in the forecasting and collaboration processes, and the accuracy of the forecasts. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to address the deficiencies identified in this report.
D-2023-0123-D000AX-0001-0001.a	Open	No
Rec. 1.a: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to include determining whether the Services' information systems accurately calculate the spare parts forecasts as intended and can maintain an audit trail to support the forecasts.
D-2023-0123-D000AX-0001-0001.b	Open	No
Rec. 1.b: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to include developing metrics and goals to measure spare parts forecast accuracy.
D-2023-0123-D000AX-0001-0001.c	Open	No
Rec. 1.c: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to include establishing procedures and controls for monitoring spare parts forecast accuracy.
D-2023-0123-D000AX-0001-0001.d	Open	No
Rec. 1.d: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to include establishing procedures for identifying, tracking, and analyzing the primary causes of inaccurate spare parts forecasts and using the data to improve the accuracy of future forecasts.
D-2023-0123-D000AX-0001-0001.e	Open	No
Rec. 1.e: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to include establishing guidance and providing recurring training to depot personnel on the process for evaluating the accuracy of spare parts forecasts and the level of research and information required to justify forecasts during monthly collaboration with the Defense Logistics Agency.
D-2023-0123-D000AX-0001-0001.f	Open	No
Rec. 1.f: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to include requiring the Services to coordinate with the Under Secretary of Defense for Acquisition and Sustainment and the Defense Logistics Agency to determine whether their spare parts forecasts add value to the Defense Logistics Agency's demand planning and purchase decisions and whether corrective actions are improving accuracy rates. The Services and the Defense Logistics Agency should consider removal of specific items from collaboration if the forecast accuracy rate cannot be improved or while forecast accuracy improvement plans are being implemented. The Services should justify keeping items with continuously low accuracy rates in the collaboration category and maintain a supporting audit trail.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

D-2023-0123-D000AX-0001-0001

Open

Rec. 1: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should evaluate the number and value of items forecasted, resources involved in the forecasting and collaboration processes, and the accuracy of the forecasts. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to address the deficiencies identified in this report.

D-2023-0123-D000AX-0001-0001.a

Open

Rec. 1.a: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment require the Services, in coordination with the Defense Logistics Agency, to conduct an in-depth review of their respective spare parts forecasting process for Defense Logistics Agency-managed items. The review should also determine how the Services can improve the process and establish a plan of action with milestones with specific areas for improvement to include determining whether the Services' information systems accurately calculate the spare parts forecasts as intended and can maintain an audit trail to support the forecasts.

D-2023-0123-D000AX-0001-0001.b

Open