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Defense Logistics Agency: Why Retention of Unneeded Supplies Persists

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Report Type Reports and Testimonies
Report Date Nov. 4, 1992
Report No. NSIAD-93-29
Subject
Summary:

According to its own records, the Defense Logistics Agency (DLA) had nearly 500,000 different items on hand as of March 1991 that had not been requisitioned for at least three years. These items accounted for $980 million of DLA's entire $11.7 billion inventory. Although DLA created programs to reduce the number of national stock numbers managed and to remove the unneeded assets from its inventory, not all items are covered by these programs. Many item managers are unfamiliar with inactive items they are responsible for. Data files contain inaccurate data that may cause managers to make incorrect decisions on retaining or deleting stock. GAO found assets for locally purchased items that had been returned to warehouses with no established means to use them. Also, national stock numbers sponsored by nondefense agencies are not covered by DLA's programs. GAO found assets for nondefense users that were left sitting in warehouses. Since GAO's review, the Defense Department has told DLA to take corrective actions on these problems.

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