The Department of Defense Could Save Several Million Dollars Annually through Improved Management and Control of Reusable Containers

Abstract

Existing controls are not sufficient to prevent the loss of valuable specialized reusable containers by the military services,. This lack of control and visibility has resulted in unnecessary procurement of containers, unnecessary fabrication of substitute containers, and premature disposal of containers. Although reusable containers have characteristics similar to other items of supply and many containers are of high dollar value, they are generally not treated and s accountable assets. As a result, containers may be obtained without cost to the user, lost without explanation, disposed of without justification, or sold without approval. DOD and the military services need to give more attention to the management and control of reusable containers to eliminate such problems as misuse, failure to redistribute excess reusable containers, and premature disposal. The Army and Navy are not selecting reusable containers based on cost-effectiveness analyses or other relevant criteria. Recommendations: The Secretary of Defense should establish DOD policies that will: assure that specialized containers are used and reused to the fullest extent practicable: prevent the loss or premature disposal of these assets; study the designation of regional clearinghouses to collect, repair, and redistribute containers; require the services to account for specialized reusable containers, revise container repair criteria, and consider imposing penalties for loss of containers; and direct the services to perform economic analyses and consider alternatives available when selecting containers for new procurements. The Secretary of the Army should improve review procedures for the Automatic Return Item List to ensure that all containers needed in the distribution system are placed on the list.

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Document Details

Document Type
Technical Report
Publication Date
Jul 19, 1978
Accession Number
AD1167987

Entities

People

  • Richard W. Gutmann

Organizations

  • United States Government Accountability Office

Tags

DTIC Thesaurus Topics

  • Accountability
  • Accounting
  • Acquisition
  • Air Force
  • Business Administration
  • Capital Investments
  • Containers
  • Contracts
  • Cost Effectiveness
  • Costs
  • Department Of Defense
  • Economic Analysis
  • Investments
  • Logistics
  • Materials
  • Money
  • Naval Air Stations
  • Naval Shore Facilities
  • Packaging
  • Procurement
  • Test And Evaluation
  • United States

Readers

  • Government Contracting/Procurement.
  • Government and Public Administration Law.
  • Materials Science