SUPPLY SECURITY AND CONTROL IMPROVEMENTS

SEC. 342. SUPPLY SECURITY AND CONTROL IMPROVEMENTS (a) Security and Control of Supplies: Reports, Funding, Procedures.—(1) Part IV of subtitle A of title 10, United States Code, is amended by adding at the end the following new chapter: “CHAPTER 171—SECURITY AND CONTROL OF SUPPLIES “Sec. “2891. Security and control of supplies: annual report. “2892. Miscellaneous procedures. “§ 2891. Security and control of supplies: annual report “(a) The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report for each of fiscal years 1989, 1996, and 1991 on security and control of Department of Defense supplies. Each such report shall be submitted not later than four months after the end of the fiscal year for which the report is submitted. “(b) Each report shall include the following: “(1) A summary of each of the physical inventory program plans of the Department of Defense, the Defense Logistics Agency, and the military departments for the fiscal year in which the report is submitted. 102 STAT. 1960 “(2) A discussion of the deficiencies, if any, in the security and control of Department of Defense supplies in the fiscal year preceding the year in which the report is submitted and a discussion of the extent to which such deficiencies have been corrected. “(3) A discussion of— “(A) research and development projects carried out by the Department of Defense in such preceding fiscal year for the improvement of the inventory and recordkeeping capabilities of the Department; “(B) any proposals for expeditious application of any new technology resulting from such projects; and “(C) the budget needs for research and development for such purpose in the fiscal year in which the report is submitted and any subsequent fiscal year for which the budget needs have been determined. “(4) The budget authority made available to the Department of Defense for inventory control functions in the fiscal year in which the report is submitted and in each of the five fiscal years preceding such fiscal year. “(5) The budget authority proposed for such purpose in the budget submitted to Congress under section 1105 of title 31 for the fiscal year following the fiscal year in which the report is submitted. “(6) The budget authority needed for such purpose in each of the five fiscal years following the fiscal year for which such budget is submitted. “(7) An evaluation of the effectiveness of supply inventory control in the fiscal year preceding the fiscal year in which the report is submitted, the criteria used by the Secretary to make such evaluation, and the information considered by the Department in making the evaluation, including the value of supplies lost or stolen or for which accountability has otherwise been lost. “(8) The aggregate statistics for all incidents of theft, fraud, or breach of security involving Department of Defense supplies that were investigated by military or civilian law enforcement agencies during the fiscal year preceding the fiscal year in which the report is submitted (including incidents involving munitions), a summary description of all such incidents (including the circumstances under which the incidents occurred), and the lessons learned by the Department of Defense from such incidents. “§ 2892. Miscellaneous procedures “(a) The Secretary of Defense shall require an investigation of each discrepancy in an accounting for supplies of the Department of Defense involving an amount exceeding the amount determined under procedures prescribed by the Secretary. The Secretary shall prescribe procedures that provide for random investigation of physical inventory discrepancies, regardless of the value of the property involved in the discrepancy. “(b) The Secretary shall, to the extent feasible, require that the job function of supply ordering and the job function of supply receiving be performed by different offices and individuals. “(c) The Secretary shall ensure— 102 STAT. 1961 “(1) that the employees of the Department of Defense and members of the armed forces assigned to manage Department of Defense supplies are skilled in the management of such supplies; and “(2) that no employee of the Department of Defense and no member of the armed forces is assigned to perform such function for disciplinary reasons.”. (2) The tables of chapters at the beginning of such part and such subtitle are each amended by adding at the end the following new item: “Chapter 171. Security and Control of Supplies 2891”. (b) Report Exception.—The Secretary of Defense may omit in the report for any fiscal year under section 2891 of title 10, United States Code, as added by subsection (a), the information relating to any of fiscal years 1983 through 1988, described in subsection (b)(4) of such section, for which the Secretary determines that there are inadequate records.