Reworked Bearings Not To Be Returned to the Navy Supply System

Published by the Government Accountability Office on 1971-08-23.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                In response to your request         of June 17, 1971, we have
         examined into the information          sent to you by Mr. L. A. Sies,
         an employee of the Naval Air Rework Facility,             North Island,
         San Diego, California.          Mr. Sies claimed that usable reworked
         bearings,    excess to the current       needs of the Rework Facility,
     I   w=--being     -disposed     of as scrap because a Navy instruction      did             1
/        not permit their       return   to the Navy xp-ly     system.

               We interviewed       Mr. Sies,     discussed the matters             included
         in this report     with    officials     at the Rework Facility,              and re-
         viewed instructions        and other     pertinent documents.

                  Our examination       showed that the Navy instruction           and cur-
         rent procedures         provided     for the use, in all feasible         instances,
         of reworked bearings           in the repair      and overhaul    processes at
         the Rework Facility.             Those reworked bearings       not needed for
         current     jobs, or not anticipated           to be needed for jobs in the
         foreseeable       future,     either    are transferred    to another rework
         facility      which has a need for such bearings             or are determined
         to be excess to all known needs and are disposed of as scrap.

                Wer have confirmed       that the Navy instruction            does not
.,       permit_reworked       bearings‘to        be returned    to the Navy supply
         system, because, at the present               time, there is a lack of stan-
         dardization     throughout       the Navy pertaining       to (1) inspection
         procedures,      (2) quality       control,     and (3) qualifications      'of re-
         work personnel.        As a result,         assurance does not exist that
         reworked bearings       will be equivalent           to new bearings.
                 We were told that,       if reworked bearings    were returned
         to the supply system as bearings            that were usable but not
         equivalent     to new, they would have to be given different            Fed-
         eral Stock Numbers to distinguish             them from new bearings    and
         to identify      each application      which they were qualified     for and
         that additional      catalog     and price data would have to be estab-
         lished.     We were told also that these and other supply system
         changes would involve         a substantial      cost.

                                    50 TH ANNIVERSARY      1921-   1971 lo406o”lj

             In our review    of past disposal    of bearings,   we were un-
     able to determine      the quantity    and value of the bearings      be-
     cause of the absence of records.          At the time of our review,
     however,    there were 5,621 bearings       on hand which were scheduled
     for disposal     and were valued at about $13,000,        or less than $3
     a bearing.      We were informed    that this low unit     cost was repre-
     sentative     of the cost of bearings     that were normally     reworked
     at North Island.

            Our examination      showed that it           was possible     that some of
     the bearings,      valued   at about $8,100,            could be used by either
     North Island      or other rework       facilities         for future     repair    jobs.
     Although    procedures    required,       among      other things,      that bearings
     be retained     for future     repair     jobs,      North Island     was consider-
     ing only past use, rather           than future         use, in this      instance.
     Supervisory     personnel    told us, when           apprised    of the potential
     use for the bearings,        that corrective            action   would be taken.

            Under existing      procedures,       in which reworked       bearings
     are not returned       to the Navy supply         system,    there might be some
     disposal     of reworked    bearings      that could be used within           the
     Navy.    Because of the low unit            cost of these bearings         and the
     costs involved      in effecting       changes to the supply         system to
     account    for all reworked       bearings,      however,    we believe     that the
     Navy’s current      policy    of not returning        reworked    bearings      to
     the supply systems is appropriate.

          We are returning       the correspondence      which you sent us,
     as you requested.        We shall   be pleased    to discuss this matter
     with you further,     if   you   should  so desire.

                                                   Sincerely     yours,

                                        getfn< Comptroller   General
                                               of the United   States


     The Honorable  Bob Wilson
.’   House of Representatives