Disposal of Obsolete and Excess Inventories Would Save Millions of Dollars

A large buildup of excess inventory has resulted from a 1973 self-imposed Department of Defense (DOD) moratorium on disposal of excess assets with potential foreign military applications. The moratorium was declared to prevent premature disposal of assets until better criteria were established for determining the needs of foreign governments. When DOD phases out a weapon system from its active inventory, it can offer foreign governments an opportunity to make a one-time purchase of spare parts to support the weapon system's remaining useful life. DOD can then dispose of the remaining inventory for the weapon system and end its support responsibility. This life-of-type buy policy could maximize the potential proceeds from the sale of excess items and reduce supply administration costs.