Increased Disposal Costs Due to Unnecessary Demilitarization

LCD-76-218: Published: Mar 3, 1976. Publicly Released: Mar 3, 1976.

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The Defense Supply Agency introduced a coding system to avoid unauthorized public sales of lethal items and items critical to national security, but many items were erroneously coded.

A total of 38,000 line items worth $2.2 million was accordingly sold for only $95,000, including such products as lacquer, overcoats, and high altitude gloves. Coding errors occurred because: criteria for identifying items requiring demilitarization were inadequate; the Defense Supply Agency waived coordination requirements and failed to establish controls over the submission of codes; and the errors, which were uncovered by a Department of Defense audit, were unchecked until private industry complained.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Defense should ensure that coding errors are corrected and that the system is operating properly. Proper management controls must be established before similar programs, such as the pending program for recovering precious metals, are initiated.

    Agency Affected:

 

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