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.

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