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LCD-79-211 1 (1979-05-16)

handle is hein.gao/gaobaazep0001 and id is 1 raw text is: 109393 . UNITED STATES GENERAL ACCOUNTING OFFICE LM109393 ou 'WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS DIVISION MAY 16,1979 B-146828 The Honorable Harold Brown The Secretary of Defense Dear Mr. Secretary: We have completed our study of excess and obsolete items held in Department of Defense (DOD) inventories. We found that DOD was retaining millions of dollars of excess inventories for possible sales to foreign governments. Much of these inventories are peculiar to weapon systems no longer used by our armed forces. DOD could eliminate much of these inven- tories and save millions of dollars in inventory maintenance and storage costs by identifying foreign governments' needs and giving the governments the opportunity to purchase the items under its life-of-type buy policy. Our observations are based on information obtained between June and November 1978 at Defense and Service head- quarters, Air Force Logistics Command, Dayton, Ohio; Naval Aviation Supply Office, Philadelphia, Pa.; Naval Ships Parts Control Center and Navy Material Support Office, Mechanicsburg, Pa.; Army Security Assistance Center, Army Material Development and Readiness Command, New Cumberland, Pa.; Red River Army Depot, Texarkana, Tex.; and the San Antonio Air Logistics Center, San Antonio, Tex. BACKGROUND I A large buildup of excess inventory has resulted from a 1973 self-imposed DOD moratorium on disposal of excess assets with potential foreign military applications. We were told that(the moratorium was declared to prevent premature disposal of assets until -et-member -se-rv-ices could es-tablish better criteria f 'o 't'r:miningf'oreigh governments needs. _,Although the United States supports foreign govern- ments through supply support arrangements, DOD recognizes that it should not store excess inventories indefinitely. LCD-79-211 ~ (943461) 109393

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