Defense Inventory

The Pentagon's procurement of supplies and equipment during a three-year period encompassing the Persian Gulf war were relatively stable. Procurements rose during fiscal year 1991 but did not reach the peak level of two years earlier. Defense Department procurements for supply and equipment items fell from $73.1 billion in fiscal year 1989 to $71.7 billion in fiscal year 1990 and rose again to $73 billion in fiscal year 1991. From fiscal years 1990 to 1991, procurements by the Army, Air Force, and Defense Logistics Agency increased 6.6, 4.4, and 24.7 percent respectively; Navy procurements declined 12.2 percent. Overall procurements increased $1.3 billion, or two percent, during this period and were spread over most federal supply class categories. Commodities with significant increases included motor vehicles, electrical and electronic equipment, fuels, lubricants and oils, subsistence, and clothing and individual equipment.

GAO found that: (1) DOD procurements in fiscal year (FY) 1991 increased over FY 1990 but were slightly lower than in FY 1989; (2) DOD-wide procurements for supply and equipment items fell from $73.1 billion in FY 1989 to $71.7 billion in FY 1990, and rose to $73 billion in FY 1991; (3) from FY 1990 to FY 1991, Army procurements increased 6.6 percent, Air Force procurement increased 4.4 percent, and Defense Logistics Agency (DLA) procurements increased 24.7 percent, but Navy procurements declined 12.2 percent; (4) DLA subsistence procurements increased by $961 million, mostly for troop support items rather than for commissary resale items; (5) the largest procurement of a single item was for chemical protective suits, which accounted for $115 million of $879 million obligated for clothing and textiles; (6) medical supply and equipment procurements increased by $44 million, and about $108 million of the $424 million spent for medical supplies was for a wide range of drug and pharmaceutical items; (7) industrial supply procurements increased by $6 million, and DOD spent $26.7 million more for various types of cable, rope, and wire, and about $8.3 million for various types of nuts, bolts, and rivets; and (8) procurements of 78 supply classes increased in FY 1991 by 61.5 percent.