A Pentagon logistics program improperly stored $1.8 billion worth of repair parts for Army tanks and armored vehicles, including storing hundreds of thousands of parts outside, according to a report issued this week.
The Defense Logistic Agency, or DLA, stored 2.17 million Army Ground Combat Systems repair parts and components as of July 2022, with a total worth of $3.8 billion. Repair parts include engines and transmissions for tanks and armored vehicles.
Of these, 67 percent, or $1.3 billion worth of goods, were stored in ways that had “critical” deficiencies, according to storage guidelines under the Care of Supplies in Storage regulations. Equipment stored with critical deficiencies includes equipment that is deteriorating and may need to be repaired before being issued.
A further one-quarter of goods had major or minor storage deficiencies, according to the report, which was published Monday. Errors in storage result in deterioration or increase the risk of deterioration, leading to potentially costly efforts to restore or acquire new material.
Examples of poorly stored equipment included the DLA storing 80 gas turbine engines, 278 transmission assemblies, and 117,535 vehicle track shoes outside. The total value of these products is $183 million.
After opening one case containing a hydraulic transmission stored outside, inspectors found the containers had “a large amount of water and oil at the bottom, exposing the transmission to accelerated deterioration.”
In part, the Inspector General blamed the problems on DLA officials providing staff with “incomplete and inadequate” instruction, which resulted in “DLA staff not fully understanding how to perform their duties.”
The DLA agreed with all Inspector General recommendations, but disagreed on the value of the equipment said to be stored in critical condition.
The report also found numerous safety hazards in DLA warehouses, including containers stacked up to “20 feet from the ground on crushed or degraded supporting pallets,” which the report said could cause injury to staff.
The report comes as the Army focuses on improving its logistics and storage programs, including by reducing the amount of equipment on the Army’s books.
Speaking at AUSA last week, Army Chief of Staff Randy George said the Army would get rid of excess equipment.
“I talked to a company commander in Europe who had a 118-page property book—that makes no sense,” George said. “We’ve put a former division commander on this project. He’s going to show us how to get this done in two divisions by the end of the year.”
It also comes as the Army works to solve problems with prepositioned stocks that were revealed as equipment was pulled from storage to be sent to Ukraine.
