Operation Desert Storm:

DOD's Funding Actions Relating to Leftover Inventories

NSIAD-93-143FS: Published: Apr 26, 1993. Publicly Released: May 27, 1993.

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Pursuant to a congressional request, GAO provided information on the services' residual or excess secondary inventory items resulting from Operations Desert Shield and Desert Storm, focusing on the: (1) methodology used to determine the value of the individual services' residual inventories; (2) value of the services' residual inventory; and (3) status of proposed funding adjustments relating to the inventory.

GAO found that: (1) the estimated value of the services' residual inventories totalled $3.4 billion; (2) in determining the value of the residual inventories, the Department of Defense estimated the value of materiel in transit, redistributed to build up incremental inventories, and expected to be returned to the wholesale level; (3) the services could not determine the extent or value of returned inventory because the equipment was not tracked and was redistributed within the services after return; and (4) the Office of the Secretary of Defense reduced the services' fiscal years 1993 to 1995 operation and maintenance budgets by $3.1 billion, basing the revised funding levels on the services' residual inventories and Operation Desert Storm purchases.

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