United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-05-25 monographic deposited born digital 34 p. GA 1.13:GAO-01-475 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-475 P0b002ee18038f000 f:d01475 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-01-475 machine generated eng fdlp REPORT GAOREPORTS-GAO-01-475 GAO-01-475 Cost effectiveness analysis Defense economic analysis Internal controls Inventory control systems Property disposal Spare parts Other Written Product A00844 As of September 1999, the Department of Defense (DOD) reported that it owned secondary inventory worth about $64 billion and of that about $9.4 billion of that inventory is more economical to retain than to dispose of and possibly repurchase later. This report focuses on whether DOD's economic retention decisions are sound. GAO found that military components (other than the Air Force) have developed models designed to make economic retention decisions on secondary inventory. However, none of the components now use their economic retention models. Instead, they and the Air Force use ceilings to limit the amount of economic retention inventory they hold. Components have not properly documented their approaches to economic retention decisions. For example, common model factors vary and assumptions lack consistency and are not current. In addition, DOD lacked sound analytical support for the maximum levels it now uses. As a result, the components cannot depend on their models or ceilings to determine retention inventory levels without review and improvement. They also have not reviewed their approaches annually . Because the ceilings lack analytical support and the model factors and assumptions vary without explanation and are out of date, the Department does not have a sound basis for its approach to manage items held in economic retention status. Consequently, the Department cannot guarantee that inventories held in economic retention are the right amount. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-475/html/GAOREPORTS-GAO-01-475.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-475/pdf/GAOREPORTS-GAO-01-475.pdf GAO-01-475 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-475 Other Written Product GAO-01-475; Defense Inventory: Approach for Deciding Whether to Retain or Dispose of Items Needs Improvement; Cost effectiveness analysis Defense economic analysis Internal controls Inventory control systems Property disposal Spare parts Public Law 106-65