Army Inventory

Problems Managing Excess Supplies as the Army Draws Down in Europe Gao ID: NSIAD-92-273 September 22, 1992

The U.S. Army in Europe has had difficulty quickly processing the large amounts of materiel turned in by units leaving Europe or returned from the Persian Gulf following the withdrawal of U.S. forces. As a result, millions of dollars worth of excess spare and repair parts have been building up--items that could be redistributed within the theater or used to meet the needs of Army units elsewhere. The Army, which has not effectively controlled the return, management, and disposition of excess materiel, is trying to strengthen its identification and management of these items. One of its most significant initiatives has been the use of a special team to review the management of excess materiel at individual units and to promote improved materiel management throughout the command. This special team is making progress in overcoming a prevailing culture that allows the holding of excess spare and repair parts at all echelons. In this culture, excess materiel that should be turned over to the wholesale supply system for possible distribution outside Europe is instead kept. The command also owns millions of dollars worth of materiel at two facilities run by the Army's wholesale manager, despite the fact that this materiel is in excess of the Army's needs and authorized inventories.

GAO found that: (1) USAREUR has had difficulty processing the large amounts of materiel turned in; (2) units and supply activities have accumulated millions of dollars of excess spare and repair parts that could be redistributed; (3) USAREUR had not controlled the turn-in, management, and disposition of excess materiel; (4) USAREUR has made improvements in the identification and management of excess materiel; (5) the most significant initiative has been the use of a special team to promote improved materiel management throughout the command; and (6) in May 1992, USAREUR was holding about $105 million of materiel in a special redistribution account stored at the redistribution facilities.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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