Defense Inventory: Control Weaknesses Leave Restricted and Hazardous Excess Property Vulnerable to Improper Use, Loss, and Theft.

The Defense Department (DOD) disposes of excess property--including vehicles, weapons, hand tools, lumber, medical equipment, and furniture--and encourages the reuse of excess property to the maximum extent possible. DOD components, civilian federal agencies, and "special programs" have equal priority and first rights to excess property. This report discusses excess property issued to three of 12 special programs--the Military Affiliate Radio System, the Civil Air Patrol, and the 12th Congressional Regional Equipment Center. Between 1995 and 2000, these programs obtained items that they were not eligible to receive with a total reported value of $34 million. These three special programs were able to obtain the items because the DOD facilities that store the property are not required to verify which items the programs are eligible to receive, and because program officials do not consistently follow applicable guidelines. GAO also noted that the programs' lists of property they are allowed to obtain are not comprehensive because the lists exclude mission-related items similar to those already permitted. Further these programs did not have reliable records for over three-quarters of their excess property. Together, the three special programs obtained over 80,000 hazardous supplies. In many cases, program officials were unaware that their programs had received such items. GAO also found similar problems in other special programs. This lack of accountability increases the risk of mishandling excess property and the potential for waste, fraud, and abuse.

GAO-02-75 January 25, 2002