Conditions That Limit Using Barter and Exchange To Acquire National Defense Stockpile Materials

RCED-84-24: Published: Oct 19, 1983. Publicly Released: Nov 18, 1983.

Additional Materials:

Contact:

Michael Gryszkowiec
(202) 275-5514
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed alternative financing methods for acquiring materials for the National Defense Stockpile. Specifically, GAO analyzed barter and exchange as a means by which federal property would be traded for needed stockpile materials, how they have been used in the program, and how they are provided for in law.

Although federal agencies have legislative authority to use barter and exchange to acquire stockpiles, these methods are seldom used because of restrictive legislative requirements and competing national interests. GAO believes that the current potential for barter and exchange as alternatives to direct cash purchases is limited.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: Some action has been taken. A working group has been established at a higher agency level. However, the report stated that authority should be above the agency level. The agency does not plan any further action now or in the future.

    Recommendation: The Assistant to the President for National Security Affairs, as Chairman of the Emergency Mobilization Preparedness Board, should assess the role barter and exchange can play in acquiring needed stockpile materials within the context of the Board's national mobilization preparedness policy and action plan. In making this determination, the legislative requirements and competing national interests and priorities related to their use should be considered, such as the requirement that the Commodity Credit Corporation be reimbursed for the agricultural commodities bartered for stockpile materials. The Board should propose legislative changes if necessary.

    Agency Affected: Executive Office of the President: Office of the Assistant to the President for National Security Affairs

  2. Status: Closed - Implemented

    Comments: The agency elevated barter and exchange to a higher level working group but did little to specifically assign and monitor agency responsibilities. No further action will take place.

    Recommendation: The Assistant to the President for National Security Affairs, as Chairman of the Emergency Mobilization Preparedness Board, should assign and monitor agency responsibilities for barter and exchange.

    Agency Affected: Executive Office of the President: Office of the Assistant to the President for National Security Affairs

  3. Status: Closed - Not Implemented

    Comments: The agency stated that nothing was to be done and that transactions should be reported after they are accomplished rather than report transactions that may not take place. No further action will take place.

    Recommendation: The Assistant to the President for National Security Affairs, as Chairman of the Emergency Mobilization Preparedness Board, should identify specific barter and exchange transactions anticipated or being explored in the President's written report to Congress detailing stockpile operations.

    Agency Affected: Executive Office of the President: Office of the Assistant to the President for National Security Affairs

 

Explore the full database of GAO's Open Recommendations »

Sep 22, 2016

Sep 21, 2016

Sep 19, 2016

Sep 12, 2016

Sep 8, 2016

Sep 7, 2016

Sep 6, 2016

Aug 25, 2016

Looking for more? Browse all our products here