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EMD-78-82 1 (1978-07-27)

handle is hein.gao/gaobaaxrk0001 and id is 1 raw text is: 

DCCUMLNT RESUME~


06652 - r B2127140]

The Strateqic and Critical Materials S.ockpile Will Be Deticient
for Many Years. END-78-82; B-125067. July 27, 1978, 19 pp. + 3
appendices (26 pp.).

Report by Elmer B. Staats, Comdptroller General.

Issue Area: Materials: Administration and Coordinaticn cf
     Materials Policy (1812).
 Contact: Energy and Minerals Div.
 Budqet Function: Natural Resources, lnuiroment, ard Energy:
     Other N .-ural Rescurcos (306).
 Orqanization Coxcerned: General Services Idministration;
     National Security Council; Federal Siuply ftzwiice4 Federal
     Preparedness Aqency.
 Conqressiondl Relevance: House Committee Gn Armed Services;
     Senate Committee on Armed Services; C%. nqress,
 Authority: Strategic and Critical Materials bock Fling Act '50
     U.S.C. 98). Defense Production Act of 1950, as amended (50
     U.S.C. App. 2093). Agricultural 1rade Development and
     Assistance Act of 1954 (68 Stat. 454; 68 stat. 456). Fcod
     for Peace Act of 1964 (7 U.S.C. 170t4(b)). 53 Stat. 811. S.
     1198 (95th Cong.)° S. 1810 (95th Ccng.).

          The United States stockpilcs 93 Ltrategic and critical
 materials (metals, ores, and drugsl curreitly valued at about
 $8.6 billion at 117 locations throughout the ccuntry. The
 General Services Administrations (GSA's) Federal Freparedness
 Agency (FPA) is responsible for planning, programir;, and
 reportinq on the stockpile. The Naticnal Security Council gives
 FPA quidance for develoring stockpile ;clicy. 2he Federal Supply
 Service (FSS) is responsible for purchasing, sxorimg,
 maintaining, transferring, rotating, distributing, and
 protecting the materials, The estimated material requirements
 qoals were increased for 72 of the 98 stockpile materials as of
 October 1, 1976. Findings/Conclusicms- The present inventory of
 many materials is far short of the goals. Shortages totaling $7
 billion exist for 51 materials, including 33 fcr which
 insufficient inventcry is on hand tc meet even the highest
 priority needs. As lonq as goals remain at the present level,
 the timeframe for attainment will be quite lengthy--15 c csore
 years for many items. Attainment has been 'ampezed by such
 factors as: an acquisition policy concerned primarily with
 avoidinq market disrupxions, limiting the dcllar value of
 acquisitions to less than the value of disposals, ccntivued
 disposals of needed materials under lcnq-term sales ccuttacts,
 loans of materials which reduce the available inventory needed
 to sdtisfy goals, and budget3ry constraints. The practice cf
 reportinq qoals as oeing satisfied by su-srecification inveAtory
significantly overstates stockpile readiness. Recsmendatio.s:
The Director of FPA should: formulate schedules for metlng
acquisition goals so that the c-%o-ese 4az nsie-r the

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