S.Amdt. 5320

1. Adds SEC. 332. REDUCTION OF ON ORDER SECONDARY INVENTORY BEYOND REQUIREMENTS on page 76, between lines 11 and 12

   Adds a sectionPrinted page

   Inserted: SEC. 332. REDUCTION OF ON ORDER SECONDARY INVENTORY BEYOND REQUIREMENTS.

   Inserted: (a) Plan for Reduction of on Order Secondary Inventory.--

   Inserted: (1) In general.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a comprehensive plan for improving the inventory systems of the military departments and reducing the acquisition of unnecessary secondary inventory.

   Inserted: (2) Content.--The plan submitted under paragraph (1) shall include--

   Inserted: (A) a plan for reducing the level of on order secondary inventory of each military department that is beyond requirements to 50 percent of the level of such inventory as of the date of the enactment of this Act;

   Inserted: (B) plans to improve related audit systems to reduce the gap between projected requirements and actual requirements; and

   Inserted: (C) such recommendations for legislative or administrative action as the Secretary considers appropriate, including actions relating to information technology, the hiring and training of personnel, and the oversight of contracts to acquire secondary inventory, to improve the inventory systems of the military departments.

   Inserted: (b) Quarterly Report.--Not later than 180 days after the date of the enactment of this Act, and every 90 days thereafter, the Secretary of Defense shall submit to the congressional defense committees a report on the status of the secondary inventory of each military department, including a description of the level of inventory beyond requirements, the levels of war time reserve, economic retention, and other categories of inventory, and the quantities and values of inventory on hand and on order that are not necessary to meet requirements, including the quantities and values of orders that are marked for disposal.

   Inserted: (c) Certification Requirement.--

   Inserted: (1) In general.--The Secretary of Defense shall certify to the congressional defense committees that, except as provided under paragraph (2), the level of on order secondary inventory of each military department that is beyond requirements has been reduced to the level that is 50 percent of the level of such inventory as of the date of the enactment of this Act.

   Inserted: (2) Exception for inventory on order under certain contracts.--The Secretary of Defense may exempt from the reduction requirement under paragraph (1) inventory that is on order under contracts that cannot be cancelled or modified without a net economic loss to the Department of Defense

   Inserted: (3) GAO review.--The Comptroller General of the United States shall review the certification under paragraph (1).

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   Inserted: (d) Limitation on Availability of Certain Funds Pending Secondary Inventory Reduction.--Of the total amount authorized to be appropriated by this Act for secondary inventory for the Department of Defense, the amount available for obligation and expenditure shall be reduced by $100,000,000 until the Secretary of Defense makes the certification required under subsection (c)(1).

   Inserted: (e) Military Departments Defined.--In this section, the term "military departments" means the Department of the Army, the Department of the Navy, the Department of the Air Force, and the Defense Logistics Agency.

   Original wording

   On page 76, between lines 11 and 12, insert the following:

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As printed