Defense Inventory:

Changes in DOD's Inventory, 1989-93

NSIAD-94-235: Published: Aug 17, 1994. Publicly Released: Aug 17, 1994.

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Pursuant to a congressional request, GAO provided information on changes in: (1) the Department of Defense's (DOD) secondary item inventory since fiscal year (FY) 1989; and (2) DOD inventory funding.

GAO found that: (1) according to DOD reports, the DOD secondary supply inventory decreased $31.9 billion between FY 1989 and FY 1993, but accounting changes render present and past inventory values uncomparable; (2) in real terms, the total DOD secondary supply inventory decreased $11.2 billion during that time frame; (3) when repair costs and scrap values were considered, the decrease was $15.0 billion; (4) budget obligations for secondary inventory items ranged from $35.6 billion in FY 1991 to $24.7 billion in FY 1993; (5) FY 1991 obligations were higher than subsequent years because of high fuel costs and funding for Operation Desert Storm; and (6) current budget estimates for secondary inventory for FY 1994 and FY 1995 are about $25 billion per year.

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