REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.

SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS. (a) Report Required.—Not later than January 31, 1998, the Secretary of Defense shall submit to Congress a report on the actions that have been taken or are planned to be taken within the Department of Defense to address problems with the sale or other disposal of materials that are excess or surplus to the needs of the Department of Defense. (b) Required Content.—At a minimum, the report shall address the following issues: (1) The effort to standardize the coding of military equipment for demilitarization at all stages of the process, from initial acquisition through disposal. (2) The changes underway to improve the methods used for the demilitarization of military equipment. (3) Recent efforts to improve the accuracy of coding performed by Government employees and contractor employees. (4) Recent efforts to improve the enforcement of the penalties that are applicable to Government employees and contractor employees who fail to comply with rules or procedures applicable to the demilitarization of military equipment. (5) The methods of oversight and enforcement used by the Department of Defense to review the demilitarization of military equipment by the purchasers of the equipment. (6) The current and planned controls designed to prevent the inappropriate transfer of excess military equipment outside the United States. (7) The current procedures used by the Department, including repurchase, to recover military equipment that is sold or 111 STAT. 1897otherwise disposed of without appropriate action having been taken to demilitarize the equipment or to provide for demilitarization of the equipment. (8) The legislative changes, if any, that would be necessary to improve the recovery rate under the procedures identified under paragraph (7). (c) Identification of Frequent Errors and Misuse.—Based on fiscal year 1997 findings, the Secretary of Defense shall identify in the report— (1) the 50 categories of military equipment that most frequently received an erroneous demilitarization code; and (2) the categories of military equipment that are particularly vulnerable to improper use after disposal.