The Chairman also requested that DOD look to the private sector for environmentally friendly processes that could be used to help demilitarize excess ammunition. Despite these efforts, the reported stockpile grew from 354,000 tons in 1993 to 493,000 tons at the end of 2000 and is projected to be at 403,000 tons in 2004 (see fig. In addition, the Operations Support Command’s reported stockpile does not include all excess ammunition needing demilitarization. The Army Increased Its Reliance on Contracted Demilitarization Without Assessing Impact on Government Facilities

In recent years, the Operations Support Command has worked to allocate 50 percent of its excess ammunition demilitarization budget to contractors that used environmentally friendly demilitarization processes. However, at the same time the Command retained and underutilized environmentally friendly demilitarization capabilities at government facilities. Recommendations for Executive Action

To improve the financial reporting, economy, and efficiency of demilitarizing excess ammunition, we recommend that the Secretary of Defense require the Secretary of the Army to 1. identify and include the total liability (domestic and overseas) associated with demilitarizing excess ammunition in the Department’s annual consolidated balance sheet; 2.  develop a plan in consultation with Congress that includes procedures for assessing the appropriate mix of public/private sector capacity needed to demilitarize excess ammunition and the cost-effectiveness of using contractors versus government facilities to demilitarize excess ammunition, with specific actions identified for addressing the capacity issue; and 3.  comply with DOD’s policy to routinely compare planned purchases of ammunition for training with usable ammunition in the stockpile and require the single manager for conventional ammunition to prepare periodic reports to the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics, documenting such comparisons and showing the quantities and types of ammunition reclaimed from the stockpile. Appendix I: Scope and Methodology

To determine the extent to which the excess ammunition stockpile has been reduced and whether the liability associated with excess ammunition has been fully identified, we reviewed the composition of the Army’s reported stockpile of excess ammunition and obtained inventory records showing the condition and location of the services’ ammunition.
Why GAO Did This Study

This report reviews the Department of Defense's (DOD) management practices for demilitarizing excess ammunition. Specifically, GAO evaluates (1) the extent to which the excess ammunition stockpile has been reduced and whether the liability associated with excess ammunition has been fully identified, (2) the Army's reliance on contracted demilitarization and the impact of doing so on government facilities that use similar environmentally friendly processes, and (3) the feasibility of using excess ammunition for U.S. training needs.

What GAO Found

GAO found that DOD's reported stockpile of excess ammunition has grown rather than decreased, rising from 354,000 tons in 1993 to 493,000 tons at the end of 2000. In addition, the reported stockpile does not include all excess ammunition, which understates DOD's ultimate liability for demilitarizing ammunition. In recent years, the Army has devoted 50 percent of its excess ammunition demilitarization budget to contractors that use environmentally friendly demilitarization processes. Although a congressional directive resulted in greater emphasis on contractor demilitarization, the Army began and later expanded this effort without considering the effect it would have on government facilities. With increased contractor demilitarization, the Army has retained and underutilized environmentally friendly demilitarization capabilities in government facilities. Finally, some excess ammunition potentially could be used to meet training needs, but further analysis by the Army is needed to fully evaluate the potential.