DOD buys tools either from GSA or by local purchase. 1.) The military services also have not provided adequate guidance to installations and operating units. Cost Information Is Not Uniformly Maintained

DOD has insufficient cost data at the headquarters, command, and installation levels to identify and track hand tool purchases, inventory levels, and losses. DOD headquarters does not maintain cost information reflecting hand tool purchases, inventory levels, and losses. Some of the personnel authorized to purchase tools also were responsible for establishing the tool requirements for the unit. Inventory Records Are Inadequate

At all units we visited, either inventory records were inaccurate or no records were available that could be used to identify and track hand tool purchases and related receipts, issues, and on-hand quantities. The Air Force units we visited at Langley Air Force Base did not have records showing receipts and issues. This review identified a need for better procedures and controls. Recommendations

We recommend that the Secretary of Defense take the following actions to ensure that hand tool purchases and inventories are adequately controlled:
Require that the military services and major commands provide guidance to installations and operating units specifying the needed internal controls over hand tools. Agency Comments and Our Evaluation

DOD agreed that, to varying degrees, the military services’ policies and procedures governing the purchase and accountability of hand tools are inadequate (see app. Scope and Methodology

We reviewed the Department of Defense’s (DOD) and the military services’ policies and procedures for controlling hand tools.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the military services' controls over hand tools, focusing on: (1) whether the services' policies and procedures for preventing the loss or unnecessary purchase of hand tools are adequate; (2) whether information is available on the costs associated with missing, lost, and stolen hand tools; and (3) the extent to which military installations control hand tool inventories and review their hand tool controls.

What GAO Found

GAO found that: (1) it cannot determine the extent to which DOD purchases unnecessary hand tools because DOD does not maintain cost data or track tool purchases and inventory levels; (2) DOD and the military services have not provided sufficient guidance and oversight to ensure that hand tools are adequately safeguarded and controlled at military installations; (3) military units do not have adequate internal controls or records to properly account for tool purchases and manage inventories; (4) many military units permitted personnel to purchase tools without prior authorization, could not identify tool purchases and trace them to inventory records, and had discrepancies between available inventory records and actual tool quantities; (5) Air Force operating units purchased many new warranted tools that were unnecessary and made local purchases even though the tools were available through normal DOD supply channels; and (6) in response to a GAO recommendation, the Air Force advised its major commands to comply with established acquisition policies and procedures.