Summary: The Defense Department (DOD) each year buys significant quantities of hand tools, such as wrenches and screwdrivers, to do maintenance and repair work at military installations worldwide. However, GAO was unable to determine the extent of unnecessary purchases and losses of hand tools because DOD has insufficient cost data to identify and track tools purchases and inventory levels, as well as costs associated with missing, lost, and stolen tools. DOD and the military services have not provided enough guidance and oversight to ensure that hand tools are adequately safeguarded and controlled at military units. Further, GAO visited military units and found that (1) personnel were allowed to buy tools without prior authorization; (2) tool purchases could not be identified and traced to inventory records; and (3) discrepancies existed between inventory records and actual tool quantities. GAO also found that Air Force operating units were buying new warranted tools to replace perfectly good tools and, contrary to regulations, were using local purchases to buy the same warranted tools that were available through normal DOD supply channels. In August 1994, Air Force headquarters sent a message to all of the major commands advising them of GAO's findings and reminding them to comply with established policies and procedures.