United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1999-04-16 monographic deposited born digital 36 p. GA 1.13:NSIAD-99-60 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-99-60 P0b002ee18039ebb5 f:ns99060 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-99-60 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-99-60 NSIAD-99-60 Military inventories Surplus federal property Inventory control systems Logistics Property disposal Defense cost control Spare parts DOD Strategic Logistics Plan DOD Supply System Inventory Report Letter Report NSIAD S99060 Pursuant to a congressional request, GAO provided information on the Department of Defense's (DOD) on-hand and on-order inventory, focusing on whether DOD: (1) had on-hand inventory exceeding current requirements as of September 30, 1996, and 1997; and (2) was buying inventory for which it had no current requirements as of those same dates.<p/>GAO noted that: (1) DOD reported reducing the secondary inventory GAO analyzed from about $69.7 billion as of September 30, 1996, to $65.8 billion as of September 30, 1997; (2) about $39.4 billion of this inventory exceeded DOD's requirements and represented about 60 percent of DOD's total on-hand inventory; (3) the percentage of inventory that exceeded current requirements remained about the same for the two periods GAO analyzed and was about the same as of September 30, 1995; (4) DOD could potentially reduce inventory that exceeded current requirements when it is economical to do so; (5) DOD had no demand for about $11 billion, or 29 percent, of $37 billion of the inventory that exceeded requirements as of September 30, 1997, but did have customer demands for the remaining $26 billion; (6) assuming customer demands remain unchanged, +$3.4 billion of this inventory would last 20 or more years and $658 million would last more than 100 years; (7) some portion of this inventory is more economical to retain than to dispose of and possibly repurchase; (8) however, to the extent it is economical to dispose of the inventory, DOD's cost of operations could be reduced; (9) DOD must continue to purchase additional inventory to replenish supply shortages; (10) however, DOD also ordered inventory that, if received, would add to the amount that exceeded requirements as defined by DOD and GAO; (11) as of September 30, 1997, DOD did not need about $1.5 billion, or 18 percent, of the inventory it had ordered to meet requirements; (12) the requirements for these inventories frequently change after the items are ordered; and (13) however, while the services cancel some of the on-order inventory that is not needed, they miss many opportunities to cancel additional orders. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-99-60/html/GAOREPORTS-NSIAD-99-60.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-99-60/pdf/GAOREPORTS-NSIAD-99-60.pdf GAO/NSIAD-99-60 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-99-60 Letter Report GAO/NSIAD-99-60; Defense Inventory: Status of Inventory and Purchases and Their Relationship to Current Needs; Military inventories Surplus federal property Inventory control systems Logistics Property disposal Defense cost control Spare parts DOD Strategic Logistics Plan DOD Supply System Inventory Report