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National Defense Stockpile: Views on DOD's 1992 Report to the Congress and Proposed Legislation

NSIAD-93-60 Published: Mar 16, 1993. Publicly Released: Mar 16, 1993.
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Highlights

Pursuant to a congressional request, GAO reviewed the: (1) analyses and assumptions used by the Department of Defense (DOD) to determine its strategic material needs; (2) DOD-recommended disposal plans and associated legislative proposals; and (3) U.S. ferroalloy upgrading program.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should present a broader range of sensitivity tests to assess the uncertainties associated with a variety of assumptions, including MCR data, foreign country reliability, warning time, and alternative war scenarios.
Closed – Implemented
DOD increased and decreased key assumptions by 15 to 20 percent, plus it changed combinations of variables in its May 1993 requirements report. It will continue to include expanded sensitivity analysis in future reports. An accomplishment report will be prepared.
Department of Defense The Secretary of Defense should obtain and use updated MCR data in determining stockpile requirements or else create working groups or committees composed of experts in the relevant subject areas to determine requirements.
Closed – Implemented
In July 1992, DOD signed an agreement with the Department of Commerce to update the material consumption ration data. Updating of the data has been completed. An accomplishment report is being prepared.
Department of Defense The Secretary of Defense should develop a range of stockpile requirements, based on sensitivity test results, to cover identified U.S. security threats.
Closed – Implemented
DOD did not concur with this recommendation. It believes the law requires the requirement for each material to be expressed as a single point estimate.
Department of Defense The Secretary of Defense should use the Market Impact Committee or create a new committee comprised of civil federal agency and independent experts to advise and counsel stockpile managers in planning and implementing stockpile disposals and acquisitions.
Closed – Implemented
The Market Impact Committee was institutionalized under an interagency charter and by the National Defense Authorization Act for Fiscal Year 1993. An accomplishment report will be prepared.

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Topics

Defense procurementFederal property managementMetalsMilitary inventoriesMineral resourcesRadioactive waste disposalRaw materialsStrategic materialsMobilizationMilitary forces