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Highlights

Pursuant to a congressional request, GAO reviewed alternative financing methods for acquiring materials for the National Defense Stockpile. Specifically, GAO analyzed barter and exchange as a means by which federal property would be traded for needed stockpile materials, how they have been used in the program, and how they are provided for in law.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of the Assistant to the President for National Security Affairs The Assistant to the President for National Security Affairs, as Chairman of the Emergency Mobilization Preparedness Board, should assess the role barter and exchange can play in acquiring needed stockpile materials within the context of the Board's national mobilization preparedness policy and action plan. In making this determination, the legislative requirements and competing national interests and priorities related to their use should be considered, such as the requirement that the Commodity Credit Corporation be reimbursed for the agricultural commodities bartered for stockpile materials. The Board should propose legislative changes if necessary.
Closed - Implemented
Some action has been taken. A working group has been established at a higher agency level. However, the report stated that authority should be above the agency level. The agency does not plan any further action now or in the future.
Office of the Assistant to the President for National Security Affairs The Assistant to the President for National Security Affairs, as Chairman of the Emergency Mobilization Preparedness Board, should assign and monitor agency responsibilities for barter and exchange.
Closed - Implemented
The agency elevated barter and exchange to a higher level working group but did little to specifically assign and monitor agency responsibilities. No further action will take place.
Office of the Assistant to the President for National Security Affairs The Assistant to the President for National Security Affairs, as Chairman of the Emergency Mobilization Preparedness Board, should identify specific barter and exchange transactions anticipated or being explored in the President's written report to Congress detailing stockpile operations.
Closed - Not Implemented
The agency stated that nothing was to be done and that transactions should be reported after they are accomplished rather than report transactions that may not take place. No further action will take place.

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