under subsection (g). (s) Suspension and termination (1) For lost or stolen items In the event an item transferred to a State or local law enforcement agency under this section is lost, stolen, or misappropriated— (A) in the case of an offensive weapon or ordnance— (i) on the first occurrence in the case of the law enforcement agency, the Director of the Defense Logistics Agency, after providing the law enforcement agency with notice and the opportunity to contest the allegation, shall suspend the law enforcement agency from eligibility for receipt of items under this section for a period of 6 months