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Order Code RS20549
Updated October 27, 2006
CRS Report for Congress
Received through the CRS Web
Defense Surplus Equipment Disposal:
Background Information
Valerie Bailey Grasso
Analyst in National Defense
Foreign Affairs, Defense, and Trade Division
Summary
The Department of Defense (DOD) has a policy for disposing of government
equipment and supplies considered surplus for a different mission, or deemed
unnecessary to the agency's designated mission. The effort to dispose of surplus military
equipment dates back to the end of World War II, when the federal government decided
to reduce a massive inventory of surplus military equipment by making such equipment
available to civilians.! At a July 25, 2006, hearing before the House Government
Reform Subcommittee on National Security, Emerging Threats, and International
Relations, Bennie Williams, the Defense Logistics Agency (DLA) Director of Logistics
Operations, identified four target areas for managing surplus military equipment: (1)
processing controls for batch lot items and materials requiring demilitarization; (2)
processing of items coded with Local Stock Numbers received at the Defense
Reutilization and Marketing Service (DRMS); (3) improved controls regarding access
to DRMS inventory assets; and (4) reducing the concurrent procurement of items
available at DRMS.2
DOD identifies and disposes of approximately $20 billion dollars of military
surplus/excess materiel annually - items ranging from desks and chairs to full weapons
systems.3 Disposition is the process of redistributing, transferring, donating, selling,
demilitarizing, destroying or other end of life cycle activities, and is the final stage
1 Disposal of surplus real property, including land, buildings, commercial facilities, and
equipment situated thereon, is assigned to the General Services Administration's Office of
Property Disposal. For further information, see CRS Report RS20630, Surplus Federal Property,
by Stephanie Smith.
2 Statement of Bennie Williams before the House Government Reform Committee, Subcommittee
on National Security, Emerging Threats and International Relations, July 25, 2006.
' The federal government classifies items by Federal Supply Class (FSC) Code, National Item
Identification Number (NIIM); combining the two codes results in the National Stock Number
(NSN). See [http://www.governmentliquidation.com].
Congressional Research Service +. The Library of Congress](ViewImageLocal?handle=hein.crs/crsmthaazxv0001&div=1&collection=&method=preview&ext=.png&size=3)
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