Defense Management: Continuing Questionable Reliance on Commercial Contracts to Demilitarize Excess Ammunition When Unused, Environmentally Friendly Capacity Exists at Government Facilities

Abstract

In April 2001, we reported that the Army Materiel Commands guidance required that 50 percent of the excess conventional ammunition demilitarization budgeta figure for which we did not find any analytical basisbe set aside for commercial firms that use environmentally friendly demilitarization processes. This resulted in the retention and underutilization of environmentally friendly demilitarization capabilities at government facilities and in additional program costs.1 We thus recommended that the Department of Defense (DOD) develop a plan in consultation with Congress that included procedures for assessing the appropriate mix of government and commercial sector capacity needed to demilitarize excess ammunition. Our intent was to have DOD reexamine the cost-effectiveness of using commercial versus government facilities to demilitarize excess ammunition. Over the past several months we have conducted work to determine the specific actions taken to implement our recommendation. We made extensive use of our prior work as a baseline to compare the changes in demilitarization capacity and utilization at government-owned facilities since our prior report. We conducted our analysis of DODs demilitarization program in accordance with generally accepted government auditing standards. The purpose of this letter is to bring to your attention that (1) theArmy has taken only limited steps in response to our recommendation and (2) additional actions are needed to address our recommendation. The Army continues to set aside 50 percent of the demilitarization budget to commercial firms, resulting in program inefficiencies and additional costs. In commenting on our recommendation in the April 2001 report, DOD stated that the Army was preparing a study for Congress, due September 30, 2001, that could be used to address the mix of government and commercial sector capacity needed to demilitarize excess ammunition.2

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Document Details

Document Type
Technical Report
Publication Date
Apr 02, 2004
Accession Number
AD1169893

Entities

People

  • Barry W. Holman
  • Chad Factor
  • Robert Wild
  • Roger Tomlinson
  • Ron Berteotti

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Ammunition
  • Army Procurement
  • Congress
  • Contracts
  • Cost Benefit Analysis
  • Cost Effectiveness
  • Costs
  • Demilitarization
  • Department Of Defense
  • Electronic Mail
  • Government Employees
  • Governments
  • Inventory
  • Munitions
  • Recovery
  • Standards
  • United States
  • Websites

Readers

  • Defense Financial Management and Audit.
  • Economics
  • Environmental Engineering.