Need for Improvement in the Management of Equipment for the Military Assistance Program

B-162479: Published: Nov 14, 1967. Publicly Released: Nov 14, 1967.

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GAO reviewed the Department of Defense's and Department of the Army's management of selected major items of equipment for the military assistance program (MAP).

GAO noted that: (1) improvements were needed in the management of the MAP-owned equipment; (2) certain unassigned MAP-owned equipment in Army storage was not being used to satisfy requirements; (3) consequently, significant amounts of MAP funds have been required to obtain equipment to fill grant-aid and sales requirements which could otherwise have been filled by the use of identical items of unassigned MAP-owned equipment in Army storage; (4) further, as a result of such equipment not being used, additional MAP funds were expended for storing and maintaining the unassigned equipment; (5) GAO believes that the failure to use available MAP-owned equipment was attributable to: (a) the absence at Army's National Inventory Control Points (NICP) of accurate inventory data and of definitive procedures for systematically screening and using unassigned MAP-owned equipment; (b) the lack of necessary controls to assure higher echelons of command that existing policies were being implemented by the NICPs; and (c) the use of verbal hold orders to reserve equipment, unassigned because of cancellation of certain grant-aid recipient country programs, for potential but unconfirmed sales, barter, or coproduction agreements.