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Defense Supply: Inventories Contain Nonessential and Excessive Insurance Stocks

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Report Type Reports and Testimonies
Report Date Jan. 20, 1995
Report No. NSIAD-95-1
Subject
Summary:

The Department of Defense (DOD) is stocking hundreds of millions of dollars of what are known as insurance items---mission-essential spare parts and supplies, such as aircraft doors, rudders, and ejection seats, that are not expected to fail during normal use--that are not mission essential and in quantities that violate DOD regulations. The unnecessary inventories occurred because inventory officials do not periodically review insurance items to ensure that they are mission-essential and stocked in appropriate quantities. It costs DOD millions of dollars each year to manage and maintain its unnecessary inventories.

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