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Pursuant to a congressional request, GAO examined the cost-effectiveness of the Defense Logistics Agency's (DLA) materiel returns program and the related policies and procedures that govern it.
Recommendations for Executive Action
|Department of Defense||1. The Secretary of Defense should require the Director, DLA, to: (1) establish annually a minimum return limit based on the total cost to process a return; (2) apply that limit to all returns except when there are valid exceptions, such as when an item is unavailable in current inventories or is only available from a diminishing number of manufacturing sources; and (3) use acquisition price as the criterion for valuing returns.|