INDEPENDENT STUDY OF DEPARTMENT OF DEFENSE SECONDARY INVENTORY AND PARTS SHORTAGES.

SEC. 362. INDEPENDENT STUDY OF DEPARTMENT OF DEFENSE SECONDARY INVENTORY AND PARTS SHORTAGES. (a) Independent Study Required.—In accordance with this section, the Secretary of Defense shall provide for an independent study of— (1) current levels of Department of Defense inventories of spare parts and other supplies, known as secondary inventory items, including wholesale and retail inventories; and (2) reports and evidence of Department of Defense inventory shortages adversely affecting readiness. (b) Performance by Independent Entity.—To conduct the study under this section, the Secretary of Defense shall select the General Accounting Office, an entity in the private sector that has experience in parts and secondary inventory management, or another entity outside the Department of Defense that has such experience. (c) Matters to be Included in Study.—The Secretary of Defense shall require the entity conducting the study under this section to specifically evaluate the following: (1) How much of the secondary inventory retained by the Department of Defense for economic, contingency, and potential reutilization during the five-year period ending December 31, 1998, was actually used during each year of the period.113 STAT. 576 (2) How much of the retained secondary inventory currently held by the Department could be declared to be excess, determined on the basis of standards that take into account requirements uniquely applicable to the Department of Defense because of its warfighting missions, such as requirements for a war reserve of items. (3) Alternative methods for the disposal or other disposition of excess inventory and the cost to the Department to dispose of excess inventory under each alternative. (4) The total cost per year of storing secondary inventory, to be determined using traditional private sector cost calculation models. (5) The adequacy of the Department’s schedule and plan for disposing of excess inventory. (d) Report on Results of Study.—The Secretary of Defense shall require the entity conducting the study under this section to submit to the Secretary a report containing the results of the study, including the entity’s findings and conclusions concerning each of the matters specified in subsection (c). The entity shall submit the report at such time as to permit the Secretary to comply with subsection (e). (e) Review and Comments of the Secretary of Defense.—Not later than September 1, 2000, the Secretary of Defense shall submit to Congress a report containing the following: (1) The report submitted under subsection (d), together with the Secretary’s comments and recommendations regarding the report. (2) A plan to address the issues of excess and excessive inactive inventory and part shortages and a timetable to implement the plan throughout the Department.