Inventory Management: Vulnerability of Sensitive Defense Material to Theft

The services have developed, or are developing, procedures for revalidating the category I baseline. For example, the Navy ammunition management system validates all transactions, and a physical inventory is conducted semiannually of all category I items. The Army has redesigned its industrial operations command quarterly audit system into a monthly reconciliation system. In addition, the Standard Army Ammunition System-Modernization (SAAS-MOD) has completed fielding worldwide, which reports all daily transactions and serial number data to the Worldwide Ammunition Reporting System (WARS). This system increases visibility of the category I missiles. It also reconciles and revalidates category I missile information from customer data. It also allows for the elimination of manual reporting of category I missiles.

Army regulations require that all missile/rocket containers eventually be opened during maintenance checks. The Army has issued Ammunition Information Notice 36-97, addressing AT-4 and LAW rockets, and Missile Information Notice 97-05, addressing Category I missiles. SB 742-1, Ammunition Surveillance Procedures, establishes the Army policy on random selection of samples for inspections, and is applicable for Category I munitions. The Navy policy for cost-effective safeguards is in OPNAVINST 5530.13B, Physical Security Instructions for Conventional Arms, Ammunition and Explosives. Implementing procedures within NAVSEA two-10-AC-ORD require the opening and inspection of the container for which original seals have been removed, if it appears to have been tampered with, or if the lot or serial number ID is no longer legible.

Serial numbers for Category I rockets will be available within the Army Standard Depot System (SDS) across the custodial records during the first quarter of fiscal year 1998, and also in the Worldwide Ammunition Reporting System. Guidance will be issued to all Navy reporting activities to manage Category I rockets by serial number. Guidance was provided to Navy reporting activities via message 09199Z in July 1997.

DOD Directive 4140.1-R, Material Management Policy, will include the following: "Upgrades/renovation or modification of a Category I missile or rocket will require a suffix be added to the original serial number assigned to the item. In no circumstances will the original serial number of the Category I missile or rocket be replaced in its entirety with another serial number." The information was inadvertently left out of the regulation during its last update a few years ago.

The Department has specific policy guidance in DOD 5100.76-M, Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives (AA&E). More general DOD guidance to installation commanders on access and circulation controls is provided in DOD regulation 5200.8-R, DOD Physical Security Program.