IMPROVEMENT OF INVENTORY MANAGEMENT POLICY AND PROCEDURE.

SEC. 347. IMPROVEMENT OF INVENTORY MANAGEMENT POLICY AND PROCEDURE. (a) Improvement in Inventory Management Policy.—Section 2458(a) of title 10, United States Code, is amended— (1) by striking out “and” at the end of paragraph (1); (2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof and”; and (3) by adding at the end the following new paragraph: “(3) set forth a uniform system for the valuation of inventory items by the military departments and Defense Agencies.”. (b) Annual Report on Inventory.—Section 2721 of such title is amended— (1) by inserting “(a)” before “Under”; and (2) by adding at the end the following new subsection: “(b) The regulations prescribed pursuant to subsection (a) shall include a requirement that the records maintained under such subsection— “(1) to the extent practicable, provide up-to-date information on all items in the inventory of the Department of Defense; “(2) indicate whether the inventory of each item is sufficient or excessive in relation to the needs of the Department for that item; and “(3) permit the Secretary of Defense to include in the budget submitted to Congress under section 1105 of title 31 for each fiscal year, information relating to— “(A) the amounts proposed for each appropriation account in such budget for inventory purchases of the Department of Defense; and “(B) the amounts obligated for such inventory purchases out of the corresponding appropriations account for the preceding fiscal year.”. (c) Implementation.—The Secretary of Defense shall establish the uniform system of valuation described in section 2458(a)(3) of title 10, United States Code (as added by subsection (a)), and prescribe the regulations required by section 2721(b) of such title (as added by subsection (b)), not later than 180 days after the date of the enactment of this Act.