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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: #Breeze who wrote (190218)	5/24/2023 9:22:15 PM
From: da_cheif™	Respond to of 208345

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To: #Breeze who wrote (190218)	5/24/2023 11:52:45 PM
From: Winfastorlose	6 Recommendations Recommended By #Breeze isopatch Mick Mørmøny roguedolphin tntpal and 1 more member Respond to of 208345

One of the reasons why the defense business is so good. Structured Malfeasance. Over $85M in F-35 parts are unaccounted for, GAO says — and that number could be much larger . Because "the F35 JPO does not have an independent record of the global spares pool, and the values of the lost spare parts are not the fully burdened cost, the $85 million of identified losses by [the subcontractor] may not accurately represent the full quantity and value of lost spare parts,” the GAO found. WASHINGTON — The government cannot account for more than $85 million in F-35 Joint Strike Fighter spare parts, a number that is likely far smaller than the actual total of untracked components, the Government Accountability Office has found in a new report. But worse than the unknown number of “lost, damaged or destroyed” taxpayer-funded equipment is fact that the F-35 Joint Program Office lacks the ability even to be aware of what spare parts are out in the world, thanks to how the supply chain for the fighter is set up. breakingdefense.com Fast Facts The Department of Defense anticipates spending $1.7 trillion over the life of its F-35 aircraft program. DOD owns certain F-35 spare parts that contractors manage. But DOD doesn't account for or oversee the parts. This is in part because various DOD offices and contractors haven't agreed on whether the spare parts should be categorized as government-furnished property. This lack of agreement affects how DOD processes lost parts. For example, of about a million lost parts worth $85 million, DOD only reviewed the circumstances surrounding 2% of identified losses since 2018. What GAO Found The Department of Defense's (DOD) F-35 Joint Program Office does not oversee or account for spare parts in its global spares pool that have been accepted and received by the government and are located at non-prime contractor facilities. The F-35 Joint Program Office does not track or enter these spare parts into an accountable property system of record that would enable it to capture and store real-time changes to property records. Currently, the prime contractors maintain this information. One contributing factor to DOD's lack of accountability over these spare parts is the lack of agreement among various organizations as to whether the spare parts are both accountable under a contract and government-furnished property. If the spare parts, which include engines; tires; landing gear; and other parts, such as bolts, screws, and fasteners, are not accountable under a contract and are not government-furnished property, the contractor will not enter these parts into the system DOD uses to track losses and disposition. Without DOD taking steps to ensure that these spare parts are accountable under a contract, the F-35 Joint Program Office will be unable to either gain or maintain accountability over these spare parts and will not have data, such as locations, costs, and quantities, needed for financial reporting or to ensure that government interests are protected. gao.gov