The Coast Guard Does Not Have Effective Inventory Controls

The Coast Guard does not have the organizational structure or computer systems necessary to effectively manage its parts and supplies inventory for its cutters. As a result, the Coast Guard does not know the value, type, quantity, and condition of many of the spare and repair parts in the overall inventory. Management Structure Results in Poor Inventory Distribution

The Coast Guard’s fragmented management structure also limits the agency’s ability to determine whether cutters have a shortage or an excess of parts and whether the parts are readily available when needed. Although we agree with the plan’s direction, we found that some initiatives are already behind schedule, increasing the potential for delays in the Coast Guard’s long-term efforts to centrally manage its inventories by fiscal year 2002. Although Coast Guard officials contend that the agency’s lack of information on parts and supplies has not significantly affected the Coast Guard’s mission, it has resulted in inefficient management of resources. Objectives, Scope, and Methodology

The former Chairman, Subcommittee on Oversight of Government Management, Senate Committee on Governmental Affairs, asked us to examine the Coast Guard’s inventory management system to identify any wasteful or inefficient practices that should be changed. First, does the Coast Guard have the systems needed to effectively manage its inventory of spare and repair parts and supplies? Second, if not, what initiatives does the Coast Guard have under way to improve its inventory management?
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Coast Guard's inventory management system for its fleet of 240 cutters to identify any wasteful or inefficient practices that should be changed, focusing on: (1) whether the Coast Guard has the systems it needs to effectively manage its inventory of spare and repair parts and supplies; and (2) initiatives the Coast Guard has under way to improve its inventory management.

What GAO Found

GAO found that: (1) the Coast Guard does not have the organizational structure or computer systems necessary to effectively manage its inventory for supporting cutters; (2) the Coast Guard does not know the value, type, quantity, and condition of many of the spare and repair parts in its inventory and cannot determine whether cutters have a shortage or an excess of parts, or whether the parts are readily available; (3) Coast Guard officials believe that the lack of inventory management information has not seriously affected the Coast Guard's ability to carry out its missions, although they acknowledge that it has resulted in costly purchases and excess inventory; (4) the Coast Guard plans to take actions to improve its inventory control problems by fiscal year 2002; and (5) some of the Coast Guard's initiatives are already behind schedule, delaying both its short-term actions and its long-term inventory management efforts.