Dec. 20, 2016 —
Our audit objective was to determine whether the Defense Logistics Agency (DLA) was effectively controlling and disposing of DoD property through its demilitarization program.1 This is the third in a series of reports on the demilitarization program.
DLA Disposition Services controlled and disposed of DoD property through the demilitarization program by implementing physical security, inventory reviews, and disposal controls at DLA Centralized Demilitarization Division2 Tucson, Arizona, and a mutilation contractor3 in Holbrook, New York, the two sites we visited. However, for self-assessment evaluations4 at three DLA Centralized Demilitarization Divisions, personnel did not always:
- report accurate results,
- include supporting documentation, or
- prepare corrective action plans to address deficiencies.
Inadequate execution of the self-assessment program occurred because DLA Centralized Demilitarization Division personnel did not comply with established procedures, and DLA Disposition Services did not provide sufficient oversight of the self-assessment reporting process. Although we observed, tested, and determined physical security, inventory reviews, and disposal controls were in place at the sites visited, inadequate self-assessment evaluations at the three DLA Centralized Demilitarization Divisions could result in noncompliance with laws and regulations and increased risk of inappropriate release of property requiring demilitarization.
We recommend the Director, Defense Logistics Agency Disposition Services, reemphasize to Centralized Demilitarization Division personnel their responsibilities to report accurate self-assessments results, submit all self-assessment supporting documentation, and prepare self-assessment corrective action plans to address deficiencies, in accordance with Defense Logistics Agency Disposition Services Standard Operating Procedure 4155.01.
In addition, we recommend the Director, Defense Logistics Agency Disposition Services:
- reemphasize to Disposition Services Compliance Branch personnel their responsibilities to execute oversight of the self-assessment program, and
- update Defense Logistics Agency Disposition Services Standard Operating Procedure 4155.01 to require Disposition Services Compliance Branch personnel to review all protocol results for accuracy and inclusion of supporting documentation.
Management Comments and Our Response
Comments from the Deputy Director, Defense Logistics Agency Logistics Operations, responding for the Director, Defense Logistics Agency Disposition Services, addressed all specifics of the recommendations, and no further comments are required.
1 A program that includes demilitarization and mutilation to eliminate the functional capabilities and inherent military design features from DoD property.
2 DLA Disposition Services operates three Centralized Demilitarization Divisions; the Tucson, Arizona, location processed the most disposal transactions in FY 2015.
3 DLA Disposition Services sells property requiring mutilation to two contractors; the contractor in Holbrook, New York, purchased the most property.
4 Self-assessments are compliance evaluations conducted at DLA Disposition Service sites that use evaluation criteria to determine the effectiveness of specific processes.
This report is a result of Project No.D2016-D000RD-0057.000.