Defense Inventory

Defense Logistics Agency's Excess Materiel on Order Gao ID: NSIAD-90-105 March 6, 1990

Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) efforts to control excess materiel on order from contractors.

GAO found that DLA: (1) supply centers' excess on-order materiel ranged in value from $204 million to $449.1 million, but DLA had requested termination for only $49.9 million; (2) item managers incorrectly recomputed or arbitrarily increased requirements to avoid recommending termination; (3) did not have the appropriate data to assess progress in terminating unnecessary contracts and orders before delivery; (4) contracting officers did not determine termination costs when negotiating contracts; and (5) did not provide appropriate guidance to item managers and contracting officers.


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