Summary: In response to a congressional request, GAO: (1) evaluated the methodology and assumptions the National Security Council (NSC) used in its study of national defense stockpile goals; and (2) compiled the views of the participating agencies.
GAO noted that the NSC report recommended the: (1) reduction of the current stockpile goals of $16.1 billion to $700 million; and (2) filling of stockpile shortfalls with the receipts from the sale of surplus stocks. GAO also noted that Congress prohibited reductions in stockpile goals until October 1, 1987. GAO found that the study: (1) did not adequately reflect major disagreements about its assumptions or reflect that its results could vary greatly with changes in those assumptions; (2) planned for less than total mobilization, which limited the size of the planned force; (3) did not fairly represent the nature or content of participating agencies' input; (4) often did not disclose participants' qualifications and objections; (5) failed to identify some agencies' responsibilities accurately; and (6) did not include direct participation by industry representatives, although such participation could have improved the accuracy of study data. GAO believes that a lack of accurate information on raw material supply and demand and a lack of organizational capability to plan and manage the stockpile continue to hinder assessments of stockpile requirements.
