oversight

Environmental Protection: Information on the Purchase, Use, and Disposal of Engine Lubricating Oil

Published by the Government Accountability Office on 2003-01-02.

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

               United States General Accounting Office

GAO            Report to the Chairman and
               Ranking Minority Member,
               Committee on Environment and
               Public Works, U.S. Senate

January 2003
               ENVIRONMENTAL
               PROTECTION

               Information on the
               Purchase, Use, and
               Disposal of Engine
               Lubricating Oil




GAO-03-340
                                                 January 2003


                                                 ENVIRONMENTAL PROTECTION

                                                 Information on the Purchase, Use, and
Highlights of GAO-03-340, a report to the        Disposal of Engine Lubricating Oil
Chairman and Ranking Minority Member,
Committee on Environment and Public
Works, U.S. Senate




Concerned with the time, money,                  There is no aggregate data on the purchase, use, and disposal of engine
and resources that the federal                   lubricating oil for the federal government as a whole. However, the three
government expends servicing its                 agencies included in GAO’s review—USPS, DOD, and GSA—collectively
vehicle and engine fleet, the                    bought nearly 41 million quarts of engine lubricating oil, valued at about
Committee asked GAO to compile                   $37.3 million, from fiscal years 1999 to 2001.
information on the government’s
use of engine lubricating oil.
                                                 Only limited data is available on the costs for disposing and recycling engine
GAO was asked to determine:                      lubricating oil used in the land-based vehicle fleets of these three agencies.
                                                 The Army and Navy maintain some disposal data, but the Air Force, GSA,
•    How much engine lubricating                 and USPS do not have any aggregate information available. In addition,
     oil the federal government                  information is not readily available on the number of labor hours and costs
     bought in fiscal years 1999,                incurred in changing oil in the agencies’ vehicles. Finally, it is difficult, if not
     2000, and 2001;                             impossible, to estimate the costs of transporting engine lubricating oil during
•    What costs are incurred for the             military operations because the transportation costs depend largely on the
     disposal and recycling of                   specific scenario.
     engine lubricating oil;
•    What costs are incurred for
     changing motor oil in military
                                                 Several methods were identified for reducing the cost and use of engine
     and civilian fleets;                        lubricating oil:
•    What logistical implications
     exist for the transport of                  •   Bypass filters, used in conjunction with traditional oil filters, can
     engine lubricating oil during                   substantially reduce the number of oil changes required by increasing
     recent military operations; and                 the intervals between oil changes by two to ten times.
•    What options exist for                      •   Synthetic lubricating oils have the potential to increase the length of
     reducing purchase,                              time between oil changes, reduce engine wear, and enhance the engine’s
     maintenance, and disposal                       operation over a greater range of temperatures.
     costs for engine lubricating oil.           •   Oil analysis programs can also reduce engine oil use. These programs
                                                     determine when it is time to change the oil by testing its condition in the
To conduct its study, GAO focused
on three agencies that account for                   engine rather than by following a regularly scheduled oil change based
79 percent of all non-tactical                       on mileage or usage.
vehicles owned or leased by the
U.S. government: the U.S. Postal                 Engine Lubricating Oil Purchases for Selected Agencies (FY 1999-2001)
Service (USPS), the Department of
Defense (DOD), and the General                                                  DOD/Military
Services Administration (GSA). It                                             Air          Marine
compiled information only on                     Fiscal year       Army     Force  Navy Corps            Total     USPS        GSA    Total
engine lubricating oil used in                   Dollars in millions
ground vehicles and equipment and                2001                $6.2    $1.5      $0.9      $0.7     $9.3       $2.1      $1.5   $12.9
not in aircraft and ships.                       2000                 6.1     1.4       1.0       0.6      9.1        2.0       1.5    12.6
                                                 1999                 5.3     1.7       0.7       0.5      8.2        2.2       1.4    11.8
                                                 Total             $17.6     $4.6      $2.6      $1.8    $26.6       $6.3      $4.4   $37.3
                                                 Quarts in millions
                                                 2001                 6.4      1.7      1.0       0.8      9.9           2.1    1.4    13.4
www.gao.gov/cgi-bin/getrpt?GAO-03-340.           2000                 6.8      1.8      1.3       0.7     10.6           2.1    1.3    14.0
                                                 1999                 6.0      2.1      1.0       0.6      9.7           2.3    1.3    13.3
To view the full report, including the scope
and methodology, click on the link above.        Total               19.2      5.6      3.3       2.1     30.2           6.5    4.0    40.7
For more information, contact William M. Solis
at (202) 512-8365 or solisw@gao.gov.             Source: Data and estimates provided by USPS, GSA, and DOD.
Contents


Letter                                                                               1


Appendix I   Briefing to the Senate Committee
             on Environment and Public Works                                         6




             Abbreviations

             AOAP        Army Oil Analysis Program
             DLA         Defense Logistics Agency
             DOD         Department of Defense
             GSA         General Services Administration
             NCDOT       North Carolina Department of Transportation
             USPS        U.S. Postal Service




             Page i                                  GAO-03-340 Engine Lubricating Oil
United States General Accounting Office
Washington, DC 20548




                                    January 2, 2003

                                    The Honorable James M. Jeffords
                                    Chairman
                                    The Honorable Bob Smith
                                    Ranking Minority Member
                                    Committee on Environment and Public Works
                                    United States Senate

                                    As you requested, we are providing you with information on the purchase,
                                    use, and disposal of engine lubricating oil by the federal government. You
                                    were concerned about the money, time, and resources that the federal
                                    government spends servicing its vehicle and engine fleet. As agreed with
                                    your offices, our work focused, to the extent that data was available, on
                                    the following five areas:

                                •   How much engine lubricating oil did the federal government purchase and
                                    what did those purchases cost for each of the most recent 3 fiscal years for
                                    which such information was available?
                                •   How much in direct costs did the federal government pay for the disposal
                                    and/or recycling of engine lubricating oil in each of the most recent 3 fiscal
                                    years for which such information was available?
                                •   How much in direct contracted costs or federal employee labor costs were
                                    incurred by the federal government for the changing of motor oil in federal
                                    civilian and military fleet engines in each of the most recent 3 fiscal years
                                    for which such information was available?
                                •   What were the costs and other logistical implications for the transport of
                                    engine lubricating oil by the military in recent military operations such as
                                    the Persian Gulf War and peacekeeping efforts in the Balkans?
                                •   What are options for reducing the costs of the purchase, maintenance, and
                                    disposal of engine lubricating oil, including the use of technologies that
                                    would eliminate the need for frequent oil changes?

                                    On November 21, 2002, we provided your offices with a briefing on the
                                    results of this review, including our scope and methodology. This report
                                    transmits the briefing, which is reprinted as an appendix.




                                    Page 1                                        GAO-03-340 Engine Lubricating Oil
          There is no aggregate data on the purchase, use, and disposal of engine
Summary   lubricating oil for the federal government. The three agencies included in
          our review—the Department of Defense (DOD), the General Services
          Administration (GSA), and the U.S. Postal Service—collectively purchased
          about 41 million quarts of engine lubricating oil, valued at about
          $37.3 million, from 1999 to 2001. DOD’s data reflects purchases that the
          military services made from the Defense Logistics Agency for both combat
          and commercial-type vehicles, but it does not include oil that the services
          bought from commercial vendors on the local economy.1 DOD officials
          could not estimate the magnitude of these purchases from the commercial
          market. Because GSA does not perform oil changes itself, its data is based
          on estimates of the number of oil changes that commercial vendors or
          other federal maintenance facilities performed on the fleet. As such, the
          cost of the oil used in these changes cannot be identified separately from
          other maintenance costs. GSA’s data excludes oil changes performed on
          GSA vehicles by other federal agencies’ maintenance facilities. The Postal
          Service’s data may not include some oil purchases, such as oil bought
          using petty cash, and oil changes performed by commercial vendors.
          However, Postal Service officials estimate that the amount of purchases
          not captured in this data is minimal (1 percent or less).

          Our work indicated that only limited data on engine oil disposal and
          recycling costs is available from the agencies we reviewed. The Air Force
          and Postal Service do not have any aggregate disposal data available for
          engine lubricating oil. GSA also does not have disposal data because it
          relies on commercial vendors or other federal maintenance facilities to
          change and dispose of oil. However, the Army and Navy do maintain some
          information on engine oil disposal. For example, the Chief of Naval
          Operations and the Commandant of the Marine Corps report annually on
          disposal and recycling costs/quantities for waste oil for Navy and Marine
          Corps installations. On average, the Navy and Marine Corps annually
          disposed of 14,741 tons and 2,892 tons of waste oil, respectively during
          fiscal years 1999 to 2001. The Army has disposal data for only a few
          selected installations from its automated hazardous materials tracking
          system, which has been partially fielded only as a pilot project thus far.

          Our review indicated that records on actual labor hours and costs incurred
          for oil changes are not readily available at the three agencies we reviewed.



          1
           DOD’s data includes engine lubricating oil used in internal combustion engines for ground
          vehicles and equipment, but does not include lubricating oil for aircraft or ship engines.




          Page 2                                                GAO-03-340 Engine Lubricating Oil
    However, we noted that some data exists that would help them estimate
    labor hours and other costs for oil changes for selected vehicles. For
    example, Army officials told us that a draft Army Oil Analysis Program
    study includes estimated data on labor and other costs for oil changes on
    selected tactical vehicles. Also, GSA and Postal Service officials said they
    could estimate the number of oil changes for their vehicle fleets based on
    maintenance schedules. They could then calculate the costs for an oil
    change after making certain assumptions, such as the amount and cost of
    labor involved in making each oil change and that oil changes were
    actually performed as scheduled.

    DOD officials told us that transportation costs for engine lubricating oil
    during military operations are scenario dependant and difficult, if not
    impossible, to determine. Typically, the military services store and
    transport oil to sustain them for the short term during contingency
    operations, usually for the first 30 days. They usually transport oil with
    other supplies and equipment or preposition oil supplies on ships or
    land overseas.

    The Defense Logistics Agency (DLA) generally provides for follow-on
    supplies to the theater, which are requisitioned by the services as needed.
    DLA may transport oil to the theater from the United States or purchase it
    locally at overseas locations where needed, depending on the specific
    operation to be supported. In the case of Desert Storm, for example,
    DLA officials stated that some engine lubricating oil was provided by
    Saudi Arabia at no cost to the U.S. government, while some oil was
    purchased commercially by DLA from the United Kingdom.

    Our limited literature search and discussions with agency officials to date
    have identified several options for reducing the costs of engine lubricating
    oil use. They are:

•   Bypass filters, which are used in conjunction with traditional oil filters to
    remove smaller contaminant particles. These filters are currently in use in
    private industry, at the North Carolina Department of Transportation
    (NCDOT), and at some U.S. military locations. Studies have shown that
    bypass filters substantially reduce the numbers of oil changes required
    by increasing the intervals between oil changes from as much as 2 to
    10 times. For example, in using these filters, NCDOT dump truck intervals
    increased from 5,000 miles to 10,000 miles and Scott Paper Company
    woodlands equipment intervals increased from 100 hours to 1,000 hours.




    Page 3                                        GAO-03-340 Engine Lubricating Oil
                  •   Synthetic lubricating oils, which can potentially increase the length of
                      time between oil changes, reduce engine wear, and enhance the engine’s
                      operation over a greater range of temperatures. The Army is currently
                      funding research in this area.

                  •   Oil analysis programs, which determine when oil changes are due based
                      on the condition of oil samples drawn from vehicles regularly and tested in
                      labs. Oil changes are made only when they are recommended by the lab,
                      rather than performed on a regularly scheduled basis. Preliminary
                      analyses performed by the Army as part of the Army Oil Analysis Program
                      (AOAP) have indicated that the Army has saved about $81 million in oil
                      change costs during the past 3 fiscal years, excluding disposal costs or
                      AOAP lab operating costs. We have not validated the study’s findings or
                      its methodology.


                      To conduct our review, we obtained information on engine oil purchases,
Scope and             disposal, and use from three agencies that account for 79 percent of the
Methodology           total non-tactical vehicles owned or leased by the U.S. government—the
                      U.S. Postal Service (35 percent); GSA (29 percent); and DOD (15 percent).
                      We held discussions or obtained data from GSA’s Federal Supply Service;
                      U.S. Postal Service headquarters; the White House Task Force on
                      Recycling; DOD’s Offices of the Deputy Under Secretary of Defense for
                      Logistics and Materiel Readiness and the Deputy Under Secretary of
                      Defense for Installations and Environment; DLA’s Defense Supply Center
                      Richmond and the Defense Reutilization and Marketing Service; and
                      several other subordinate agencies and offices in each of the military
                      services. We did not validate any of the data provided by the selected
                      agencies or assess the merits of the options identified for reducing the
                      costs of engine lubricating oil use. We performed our work from
                      August through December 2002 in accordance with generally accepted
                      government auditing standards.


                      In providing oral comments on the briefing slides pertaining to their
Agency Comments       agencies, GSA and Postal Service representatives stated that they agreed
                      with the information presented. Additional comments on the material
                      were incorporated as appropriate. DOD provided technical comments on a
                      draft of this report, which we have also incorporated as appropriate.


                      We are sending copies of this report to the Chairmen and Ranking
                      Minority Members of other Senate and House committees and


                      Page 4                                       GAO-03-340 Engine Lubricating Oil
subcommittees that have jurisdiction and oversight responsibilities for
DOD, GSA, and the Postal Service. We are also sending copies to the
Secretary of Defense, the Administrator of GSA, the Postmaster General,
and the Director of the Office of Management and Budget. Copies will also
be available at no charge on our Web site at www.gao.gov.

If you or your staff have any questions about this report, please contact me
at (202) 512-8365 or e-mail me at solisw@gao.gov. Key contributors to this
report were Ken Knouse, Cary Russell, Betsy Mead, and Andria Key.




William M. Solis
Director, Defense Capabilities
 and Management




Page 5                                       GAO-03-340 Engine Lubricating Oil
               Appendix I: Briefing to the Senate Committee
Appendix I: Briefing to the Senate Committee
               on Environment and Public Works



on Environment and Public Works




      Information on the Purchase,
       Use, and Disposal of Engine
             Lubricating Oil

        Briefing to the Senate Committee on
           Environment and Public Works

                 November 21, 2002




               Page 6                                         GAO-03-340 Engine Lubricating Oil
                  Appendix I: Briefing to the Senate Committee
                  on Environment and Public Works




Introduction

As you requested, we are providing information on the
purchase, use, and disposal of engine lubricating oil by the
federal government. You were concerned that, at this time of
heightened attention to military effectiveness, government
efficiency, energy security, and environmental protection, the
money, time, and resources that the federal government
spends servicing its vast vehicle and engine fleet are of critical
importance.




                                                                                             2




                  Page 7                                         GAO-03-340 Engine Lubricating Oil
                      Appendix I: Briefing to the Senate Committee
                      on Environment and Public Works




Objectives

• How much engine lubricating oil did the federal government purchase and
  what was the cost of those purchases for each of the most recent 3 fiscal
  years for which such information was available?
• How much in direct costs did the federal government pay for the disposal
  and/or recycling of engine lubricating oil in each of the most recent 3 fiscal
  years for which such information was available?
• How much in direct contracted costs or federal employee labor costs were
  incurred by the federal government for the changing of motor oil in federal
  civilian and military fleet engines in each of the most recent 3 fiscal years
  for which such information was available?
• What were the costs and other logistical implications for the transport of
  engine lubricating oil by the military in recent military operations, such as
  the Persian Gulf War and peacekeeping efforts in the Balkans?
• What are the options for reducing the costs of the purchase, maintenance,
  and disposal of engine lubricating oil, including the use of technologies that
  would eliminate the need for frequent oil changes?


                                                                                                 3




                      Page 8                                         GAO-03-340 Engine Lubricating Oil
                    Appendix I: Briefing to the Senate Committee
                    on Environment and Public Works




Scope and Methodology

• Focused on three agencies that account for 79 percent of the total
  non-tactical vehicles owned or leased by the U.S. government:
          • U.S. Postal Service (USPS) - 35 percent
          • General Services Administration (GSA) - 29 percent
          • Department of Defense (DOD) - 15 percent.
             (DOD also maintains numerous tactical vehicles, which were also part
               of our review.)


• Found no aggregate data on oil use available for the U.S.
  government as a whole.

• Compiled data only on engine lubricating oil used in internal
  combustion engines for ground vehicles and equipment. Did not
  include lubricating oils for aircraft or ship engines.

                                                                                               4




                    Page 9                                         GAO-03-340 Engine Lubricating Oil
                              Appendix I: Briefing to the Senate Committee
                              on Environment and Public Works




Scope and Methodology

• Identified 5 different types of oil based on DOD specifications:

                                      Description                                   Specification
                                    of Specification                                  Number
         Lubricating Oil, Internal Combustion Engine, Combat/Tactical Service    MIL-PRF-2104
         Lubricating Oil, Automotive Engine, API Service SH                      CID A-A-52039
         Lubricating Oil, Heavy-Duty Diesel Engine                               CID A-A-52306
         Lubricating Oil, Internal Combustion Engine (Preservation & Break-In)   MIL-PRF-21260
         Lubricating Oil, Internal Combustion Engine, Arctic                     MIL-PRF-46167
         Source: DOD.

• Did not validate any data provided by the selected agencies.

• Performed review from August through December 2002 in accordance with
  generally accepted government auditing standards.


                                                                                                                    5




                              Page 10                                                   GAO-03-340 Engine Lubricating Oil
                 Appendix I: Briefing to the Senate Committee
                 on Environment and Public Works




Scope and Methodology

Held discussions and/or obtained data from the following
  organizations:
   • GSA’s Federal Supply Service
   • USPS Headquarters
   • White House Task Force on Recycling
   • DOD: Office of the Deputy Under Secretary of Defense
      for Logistics and Materiel Readiness, and the Office of
      the Deputy Under Secretary of Defense for Installations
      and Environment
   • Defense Logistics Agency: Defense Supply Center
      Richmond, and Defense Reutilization and Marketing
      Service

                                                                                            6




                 Page 11                                        GAO-03-340 Engine Lubricating Oil
                Appendix I: Briefing to the Senate Committee
                on Environment and Public Works




Scope and Methodology


  • U.S. Army: Office of the Deputy Chief of Staff G-4, U.S.
    Army Materiel Command, and the U.S. Army
    Environmental Center
  • U.S. Air Force: Office of the Deputy Chief of Staff for
    Installations and Logistics, and Air Force Center for
    Environmental Excellence
  • U.S. Navy: Naval Facilities Engineering Command, and
    Naval Supply Systems Command
  • U.S. Marine Corps: Installations and Logistics
    Department


                                                                                           7




                Page 12                                        GAO-03-340 Engine Lubricating Oil
                                   Appendix I: Briefing to the Senate Committee
                                   on Environment and Public Works




Worldwide Non-Tactical Vehicle
Inventory by Federal Agency (FY 2001)

    Other                                                                              29%
    Dept. of Treasury                                                                  GSA
    Dept. of Interior
                                                                                      173,289
+   Dept. of Justice
    Dept. of Agriculture

=    129,975
       22%



                            35%                                               15%
                           USPS                                               DOD
                          206,305                                            86,545
Note: Numbers may not add to 100 percent due to rounding.
                                                                                                              8
Source: GSA Fiscal Year 2001 Federal Fleet Report.




                                   Page 13                                        GAO-03-340 Engine Lubricating Oil
                                   Appendix I: Briefing to the Senate Committee
                                   on Environment and Public Works




                                        DOD Non-Tactical Vehicle Usage by
          DOD                                  Military Agency (FY 2001)
          15%
                                                             Army
                                                             14%
                                                                                                 Navy
                                                                                                 33%




                     Air Force                                                                    Marine C orps
                        46%                                                                            4%
                                        O ther D efense
                                                                         Army Corps of
                                           Agencies
                                                                           Engineers
                                              2%
                                                                              1%



Note: Figure does not include vehicles leased from GSA. In fiscal year 2001, DOD leased 98,576 vehicles from GSA.
                                                                                                                           9
Source: GSA Fiscal Year 2001 Federal Fleet Report.




                                   Page 14                                                     GAO-03-340 Engine Lubricating Oil
                                   Appendix I: Briefing to the Senate Committee
                                   on Environment and Public Works




Engine Lubricating Oil Purchases for
Selected Agencies

• DOD has fewer non-tactical vehicles than GSA and
  USPS. However, it also has a large number of
  tactical vehicles operated by the military services.

• As a result, DOD has a                                                                   $9.3 m il.

  significantly higher amount
  of oil purchases.                                                  $2.1 m il.
                                                                                                                 $1.5 m il.



                                                                       U SPS                  DOD                  G SA

                                                                  FY 2001 Engine Lubricating Oil Purchases by Agency

Source: Defense Logistics Agency, U.S. Postal Service, and the General Services Administration.                               10




                                   Page 15                                                        GAO-03-340 Engine Lubricating Oil
                                          Appendix I: Briefing to the Senate Committee
                                          on Environment and Public Works




Engine Lubricating Oil Purchases for
Selected Agencies (FY 1999-2001)
                                                         DOD/Mi litary1
                Fiscal Ye ar                                                                                 US PS 2          GS A3           TOTAL
                               Army    Air Force            Navy   Ma rine Corps               Total
                        2001      $6.2      $1.5              $0.9          $0.7                  $9.3              $2.1            $1. 5       $12. 9
   $ Millions




                        2000       6.1       1.4               1.0           0.6                   9.1               2.0             1. 5        12. 6
                        1999       5.3       1.7               0.7           0.5                   8.2               2.2             1. 4        11. 8
                Total            $17.6      $4.6              $2.6          $1.8                 $26.6              $6.3            $4. 4       $37. 3

                        2001        6.4            1.7            1.0                 0.8           9.9              2.1              1. 4       13. 4
 (Millions)
  Quarts




                        2000        6.8            1.8            1.3                 0.7          10.6              2.1              1. 3       14. 0
                        1999        6.0            2.1            1.0                 0.6           9.7              2.3              1. 3       13. 3
                Total              19.2            5.6            3.3                 2.1          30.2              6.5              4. 0       40. 7

  1DOD/military data reflects purchases made by the military services from the Defense Logistics Agency (DLA).

  These purchases do not include oil bought from commercial vendors by the services on the local economy.
  DOD officials could not estimate the magnitude of the purchases not included in the data.
  2PostalService data may not include some oil purchases, such as oil bought using petty cash and oil changes performed by commercial
  vendors. However, Postal Service officials believe the amount of purchases not captured in this data is minimal (1 percent or less).

  3GSA data is based on estimates of the number of oil changes performed. GSA does not actually perform oil changes itself. Rather, they

  are performed by commercial vendors or other federal maintenance facilities. As such, the cost of the oil used in these changes cannot be
  identified separately from other maintenance costs. The GSA data above excludes oil changes performed on GSA vehicles by other federal
  agencies’ maintenance facilities.

Source: Defense Logistics Agency, U.S. Postal Service, and the General Services Administration.                                                    11




                                          Page 16                                                                GAO-03-340 Engine Lubricating Oil
                                    Appendix I: Briefing to the Senate Committee
                                    on Environment and Public Works




DOD                                 Oil Purchases by Military Service
                                               (FY 2001)
      $9.3
     million


                                                  Army
                                                  66%




                                                                                          Air Force
                                                                                            16%
                                                                               Navy
                                                     Marine Corps              10%
                                                          8%



SOURCE: Defense Logistics Agency.                                                                                12




                                    Page 17                                           GAO-03-340 Engine Lubricating Oil
                                      Appendix I: Briefing to the Senate Committee
                                      on Environment and Public Works




Military Service Purchases
by Oil Type (FY 2001)

                               9,000 ,000

                               8,000 ,000

                               7,000 ,000

                               6,000 ,000

                               5,000 ,000

                               4,000 ,000

                               3,000 ,000

                               2,000 ,000

                               1,000 ,000

                                         0
                                                   P urchas e C ost ($)                  Q uantity (Q u arts )
     C O MB AT & T AC T IC AL SE R VIC E             $7 ,542,256.65                          8 ,179,637
     C O MME R C IAL O IL S                          $1 ,030,133.59                          1 ,343,092
     O T HE R MIL IT AR Y AP PL IC AT IO NS           $667 ,837 .90                           322 ,580
  Note: Commercial oils are used in administrative use commercial type vehicles, but are also used in some tactical wheeled vehicles.



Source: Defense Logistics Agency.                                                                                              13




                                      Page 18                                                   GAO-03-340 Engine Lubricating Oil
                   Appendix I: Briefing to the Senate Committee
                   on Environment and Public Works




Disposal and Recycling Costs for
Engine Lubricating Oil
• Only limited data is available from certain agencies.
       • Chief of Naval Operations and Commandant of the Marine
         Corps report annually on disposal and recycling
         costs/quantities for waste oil (for Navy and Marine Corps
         installations).
       • Army has disposal data for only a few selected installations
         from its automated hazardous materials tracking system
         (system only partially fielded as a pilot project).
       • Air Force and USPS do not have any aggregate disposal
         data available for engine lubricating oil. GSA also does not
         have disposal data because it relies on commercial vendors
         or other federal maintenance facilities to change and
         dispose of oil.


                                                                                             14




                   Page 19                                        GAO-03-340 Engine Lubricating Oil
                                 Appendix I: Briefing to the Senate Committee
                                 on Environment and Public Works




Average Annual Waste Oil Disposal/Recycling
Amounts for the Navy and Marine Corps

                                                                                              17,633 Tons
                    20,000                 14,741 Tons


                    15,000

           Tons 10,000
                                                                     2,892 Tons
                      5,000

                            0
                                        Navy                 Marine Corps                  Total

                   Recycled             7,165                    1,646                     8,811
                   Disposed             7,576                    1,246                     8,822



 Note: Waste oil includes engine lubricating oil as well as other waste, such as transmission and hydraulic fluids.
                                                                                                                         15
 Source: GAO analysis of Navy data for fiscal years 1999-2001.




                                 Page 20                                                      GAO-03-340 Engine Lubricating Oil
                                Appendix I: Briefing to the Senate Committee
                                on Environment and Public Works




Average Annual Waste Oil Disposal/Recycling
Net Costs for the Navy and Marine Corps



                $1,000,000

                  $800,000

                  $600,000
                                                                               Disposal Costs
                  $400,000
                                                                               Recycle Revenue
                  $200,000
                                                                               Net Cost
                           $0

                 -$200,000
                                      Navy          Marine       Total
                 -$400,000                          Corps



 Source: GAO analysis of Navy data for fiscal years 1999-2001.                                                16




                                Page 21                                            GAO-03-340 Engine Lubricating Oil
                    Appendix I: Briefing to the Senate Committee
                    on Environment and Public Works




Labor and Contract Costs for Changing
Engine Lubricating Oil
• Records were not readily available on actual labor hours and costs
  incurred for oil changes at the selected agencies.
• Potential exists for estimating labor hours and other costs for oil
  changes for selected vehicles. For example,
      • A draft Army Oil Analysis Program (AOAP) study includes
         estimated data on labor and other costs for oil changes on
         selected tactical vehicles. Could potentially duplicate part of
         study methodology to examine additional Army vehicles.
      • GSA and USPS can estimate numbers of oil changes for
         their vehicle fleets based on maintenance schedules. Costs
         for an oil change can also be estimated using assumptions
         about costs, such as the amount and cost of labor per
         change and the fact that oil changes were actually
         performed as scheduled.


                                                                                              17




                    Page 22                                        GAO-03-340 Engine Lubricating Oil
                                  Appendix I: Briefing to the Senate Committee
                                  on Environment and Public Works




Oil Change Costs for Selected Army
Ground Vehicles from Draft AOAP Study
                                                                                              HMMWV
    Percent of Total AOAP Ground Equipment Oil
    Samples Represented by Selected Army Vehicles
    (FY1999-2001)
                                                                                             M1A1/A2
                                                                                             Series
                                                                                             Abrams
                                                                                             Tank


                                                                                             M2/M3 Bradley
          80%                                                        Selected                Fighting
                                                  20%                                        Vehicle
                                                                     Equipment
                                                                                             Multiple Launch
                                                                                             Rocket System
                                                                                             (MLRS)



                                                                                             Family of
                                                                                             Medium Tactical
                                                                                             Vehicles (FMTV)



Source: GAO analysis of data from Army-sponsored study, United States Department of Army, Army Oil Analysis Program
Economic Benefits Analysis, University of Alabama in Huntsville.                                                      18




                                  Page 23                                                  GAO-03-340 Engine Lubricating Oil
                                                   Appendix I: Briefing to the Senate Committee
                                                   on Environment and Public Works




   Oil Change Costs for Selected Army
   Ground Vehicles from Draft AOAP Study
          Costs of an Oil Change for Selected Army Ground Equipment
                                    (Note 1)

 Family of Medium Tactical Vehicles                          $203

     Multiple Launch Rocket System                    $144

     M2/M3 Bradley Fighting Vehicle                   $144

    M1 Series Abrams Tank (Note 2)                                                          $475
                                                                                                                        Labor Cost per Oil Change
                  HMMWV (Note 3)            $47
                                                                                                   Family of Medium Tactical Vehicles                              $67
                                      $0 $50 $10 $15 $20 $25 $30 $35 $40 $45 $50
                                              0 0 0 0 0 0 0 0 0
                                                                                                      Multiple Launch Rocket System                 $28
                                                   Oil Filter Oil Labor

NOTES:                                                                                                M2/M3 Bradley Fighting Vehicle                $28
1. An oil change for the purposes of the Army study included oil for both the engine
crankcase and the transmission. However, some of the vehicles also use engine
lubricating oil in other vehicle components such as the steering system and the hydraulic                    M1 Series Abrams Tank                        $43
system. Oil in these other systems is not included in this data.

2. Total oil costs for the M1 of $254.70 includes $91.50 for aircraft turbine engine oil,                                   HMMWV                  $26
which was not one of the oils in the scope of our review.

3. Total oil costs for the HMMWV of $14.52 includes $6.36 for automatic transmission                                                    $0 $10 $20 $30 $40 $50 $60 $70 $80
fluid, which was not one of the lubricating oils in the scope of our review.



   Source: GAO analysis of data from Army-sponsored study, United States Department of Army, Army Oil Analysis Program
   Economic Benefits Analysis, University of Alabama in Huntsville.                                                                                                      19




                                                   Page 24                                                                       GAO-03-340 Engine Lubricating Oil
                                             Appendix I: Briefing to the Senate Committee
                                             on Environment and Public Works




Oil Change Costs for Selected Army
Ground Vehicles from Draft AOAP Study
                                          E s t im a t e d Av e r a g e A n n u a l L a b o r C o s t s f o r O il
                                         C h a n g e s o n S e le c t e d E q u ip m e n t ( F Y 1 9 9 9 - 2 0 0 1 )

                                                                 TO TA L                                                                           $239
                        F a m ily o f M e d iu m T a c tic a l V e h ic le s                                    $96
                             M u ltip le L a u n c h R o c k e t S y s te m         $6
                             M 2 /M 3 B r a d le y F ig h tin g V e h ic le                    $39
                                        M 1 S e r ie s A b r a m s T a n k                 $33
                                                               HMMW V                                $65

                                                                               $0          $50            $100          $150       $200      $250      $300
                                                                                                                                     ($ ) T h o u sa n d s



                                     Es tim a te d L a b o r H o u r s Ex p e n d e d f o r O il C h a n g e s o n S e le c te d Eq u ip m e n t
                                                                              ( FY 1 9 9 9 - 2 0 0 1 )


                                                                    TO TA L                                                                                  13.8
                        F a m ily o f M e d iu m Ta c tic a l V e h ic le s                                           5.6
                             M u ltip le L a u n c h R o c ke t S y s te m               0.3
                             M 2 /M 3 B r a d le y F ig h tin g V e h ic le                         2.3
                                         M 1 S e r ie s A b r a m s Ta n k                         1.9
                                                                 HMMW V
                                                                                                              3.8
                                                                                    0          2          4         6       8       10        12        14          16
                                                                                                                            L a b o r H o u r s in Th o u s a n d s




Source: GAO analysis of data from U.S. Army sponsored study, United States Department of Army, Army Oil Analysis Program
Economic Benefits Analysis, University of Alabama in Huntsville.                                                                                                                                 20




                                             Page 25                                                                                                                  GAO-03-340 Engine Lubricating Oil
                       Appendix I: Briefing to the Senate Committee
                       on Environment and Public Works




Transportation of Oil for Military
Operations
• Transportation costs for engine lubricating oil during military operations are
  scenario-dependant and difficult (if not impossible) to determine.
• Military services store and transport oil to sustain them for the short term
  during operations (usually for the first 30 days).
        • Oil is transported with other supplies and equipment, or prepositioned
          overseas on ships or on land.
        • Costs attributed to transporting the oil are difficult to determine.

• Defense Logistics Agency (DLA) provides for follow-on supplies to the
  theater, and these are requisitioned by the services as needed.
        • DLA may transport oil to theater from U.S. or purchase it locally at overseas
          locations where needed (dependant on specific operations).
        • For Desert Storm, some engine lubricating oil was provided by Saudi Arabia
          at no cost to the U.S. government, while some oil was purchased
          commercially by DLA from the United Kingdom.
        • Costs for transporting oil are difficult to determine because contract prices
          from suppliers often include transportation.


                                                                                                 21




                       Page 26                                        GAO-03-340 Engine Lubricating Oil
                      Appendix I: Briefing to the Senate Committee
                      on Environment and Public Works




Options for Reducing Oil Cost and Use

• Our limited literature searches and discussions with agency officials have
  identified some methods for reducing costs of engine lubricating oil use
    • Bypass filters
            • Used in conjunction with traditional oil filters to remove smaller
              contaminant particles.
            • Currently in use in private industry, North Carolina Department
              of Transportation (NCDOT), and some U.S. military locations.
            • Studies show bypass filters significantly reduce the number of
              oil changes required. Increases in intervals between oil
              changes of 2 to 10 times have been realized.
               • NCDOT dump truck intervals increased from 5,000 miles to 10,000 miles.
               • Scott Paper Company woodlands equipment from 100 hours to 1,000 hours.

        • Synthetic lubricating oils
           • Potentially decrease number of oil changes needed.
             Reductions of up to two to five times versus conventional motor
             oil are possible.
           • Research is being funded by the Army.

                                                                                                22




                      Page 27                                        GAO-03-340 Engine Lubricating Oil
                  Appendix I: Briefing to the Senate Committee
                  on Environment and Public Works




Options for Reducing Oil Cost and Use


  • Oil analysis programs
         • Oil analysis determines when oil changes are due based
           on oil condition
           • Oil samples are drawn from vehicles regularly and tested in labs.
           • Oil changes are made only when recommended by lab (as opposed
             to performing regularly scheduled oil changes).

        • Oil analysis used in industry and government to extend
          oil change intervals.
           • Trucking companies
           • U.S. military




                                                                                            23




                  Page 28                                        GAO-03-340 Engine Lubricating Oil
                 Appendix I: Briefing to the Senate Committee
                 on Environment and Public Works




Options for Reducing Oil Cost and Use


    • A recent draft study estimates the AOAP has saved the
      Army over $80 million in oil change costs during the past 3
      fiscal years (not including disposal costs or AOAP lab
      operating costs).
          • Army uses AOAP to identify when oil changes are needed for
            certain vehicles and equipment.
          • Most combat and tactical equipment is covered by AOAP (aviation
            and ground equipment).
          • Study compared estimated costs for oil changes on vehicles
            enrolled in AOAP against estimated costs if AOAP were not used
            (i.e., oil changes based on scheduled intervals).
          • Cost estimates were based on projection of oil change
            costs/frequencies for 10 aviation and ground systems.
          • Draft study findings and methodology were not validated by GAO.
    • We did not assess the merits of the options identified for
      reducing the costs of engine lubricating oil use.

                                                                                           24




                 Page 29                                        GAO-03-340 Engine Lubricating Oil
                                             Appendix I: Briefing to the Senate Committee
                                             on Environment and Public Works




           Cost Savings Estimates from Army Oil
           Analysis Program (AOAP) Draft Study
                                         Dollars in millions

                                                                          Fiscal          Total
                                                                          Year
                                                                          2001           FY99-01
                                         Estimated Oil
                                         Change Costs
                                         Using AOAP
                                                                           $21.6           $70.3

                                         Estimated Oil
                                         Change Costs
                                         Without AOAP                      $47.4          $151.6

                                         Estimated
                                         Savings                           $25.8           $81.3

           Source: GAO analysis of data from Army-sponsored study, United States Department of Army, Army Oil Analysis Program
           Economic Benefits Analysis, University of Alabama in Huntsville.                                                      25




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                                             Page 30                                                  GAO-03-340 Engine Lubricating Oil
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