Defense Acquisitions: Price Trends for Defense Logistics Agency's Weapon System Parts

A letter report issued by the General Accounting Office with an abstract that begins "Some military commands are raising concerns about price increases for weapon system parts. The Defense Logistics Agency (DLA) provides these parts and related services to the military, Department of Defense agencies, and other government entities. GAO found that the majority of DLA's weapon system spare parts experienced a relatively low annual price change--less than 5 percent--from 1989 through 1998. However, the prices for some parts are increasing. Most of the extreme price increases are due to inaccurate price estimates, outdated prices, or changes in quantities purchased. This could affect some military units' ability to buy needed spare parts.