Termination of U.S. Navy procurement contracts for secondary items in long supply

Abstract

This thesis discusses the U.S. Navy's current situation with regard to secondary items in long supply. This study concentrated solely on the area of acquisition of secondary items for wholesale inventory requirements. A brief history follows of how the U.S. Navy makes its requirements determinations and how the Navy has ended up in a long supply position on many items. The proposed Naval Supply Systems Command's termination model is examined in detail. Recommendations are given for potential improvements in this model which should result in more accurate determinations of the actual costs involved in a termination decision. An alternative decision model is proposed which, if implemented in the Navy, will assist both item managers and buyers in making the best business decisions on whether to terminate a contract for items in long supply or allow it to continue to completion. Keywords: Inventory models, Spare parts. (KR)

This thesis discusses the U.S. Navy's current situation with regard to secondary items in long supply. This study concentrated solely on the area of acquisition of secondary items for wholesale inventory requirements. A brief history follows of how the U.S. Navy makes its requirements determinations and how the Navy has ended up in a long supply position on many items. The proposed Naval Supply Systems Command' s termination model is examined in detail . Recommendations are given for potential improvements in this model which should result in more accurate determinations of the actual costs involved in a termination decision. An alternative decision model is proposed which, if implemented in the Navy, will assist both item managers and buyers in making the best business decisions on whether to terminate a contract for items in long supply or allow it to continue to completion.