Jan. 23, 2017
Management of Excess Material in the Navy's Real-Time Reutilization Asset Management Facilities Needs Improvement
Our audit objective was to determine whether the Navy was effectively managing excess material. Specifically, we determined whether the Navy was identifying and reporting excess1 material to the wholesale level2 to ensure the effective use or reuse of that material and to minimize the Navy’s cost to store and maintain excess inventory.
For this audit, we focused on the retention of excess consumable material3 in the Navy Real-Time Reutilization Asset Management (RRAM) facilities. Examples of such material include aircraft damper seals, spring tension washers, and electrical cable assemblies. These RRAM facilities provide a collection, storage, inventory, and redistribution point for excess material. We reviewed whether consumable material held in RRAM facilities for more than 4 ½ years4 was justified for retention to minimize the Navy’s cost to store and maintain excess material and was reused to offset or defer procurements.