Summary

GAO reviewed the utilization by the Department of the Army of reusable containers for electronic equipment.

GAO noted that: (1) a need for improvement in the Army's procedures for identifying containers and making them available for transfer to manufacturers of electronic equipment for the shipment of newly produced electronic equipment; (2) such use of government-furnished shipping containers would aid materially in reducing procurement costs; (3) from June 1962 through July 1965, the Army purchased various types of shipping and storage containers even though similar reusable containers valued at about $1.1 million were available in Army depots at the time the procurements were made; (4) during the same period, reusable containers valued at about $327,000 were disposed of; (5) GAO found that containers were not being utilized because Army procedures did not require procurement and supply personnel to coordinate their efforts and identify containers already available in the Army supply system; (6) GAO discussed the potential utilization of containers with appropriate Army officials during its review and pointed out specific instances in which these containers could be supplied to contractors as government-furnished material; and (7) in response, the Army did furnish containers valued at $489,000 to various contractors.