http://worldcat.org/entity/work/id/42357221

Navy ordnance analysis of business area efforts to streamline operations and reduce costs : report to the Chairman, Subcommittee on Military Readiness, Committee on National Security, House of Representatives

This report reviews financial and management issues related to the ordnance business area of the Navy Working Capital Fund. The Navy reorganized this business area in 1993 to reduce costs and address shortcomings in ordnance logistics management that were identified during the Persian Gulf War and by various working groups and studies. However, the business area has experienced financial difficulties since the reorganization--losing a reported $212 million during fiscal years 1994 through 1996 despite price increases of 78 percent. An earlier GAO report (GAO/AIMD/NSIAD-97-74, Mar. 1997) discussed the causes of these price increases and losses, including the fact that business area managers have been unable to reduce overhead costs as rapidly as their workload has declined. This report (1) evaluates the Navy's proposed and ongoing actions to reduce the business area's costs and (2) identifies additional cost reduction opportunities.

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