According to the DLA Website:
Part of the Defense Logistics Agency, DLA Disposition Services disposes of excess property received from the military services. The inventory changes daily and includes thousands of items: from air conditioners to vehicles, clothing to computers, and much more. That property is first offered for reutilization within the Department of Defense (DoD), transfer to other federal agencies, or donation to state and local governments and other qualified organizations. Reutilization means big savings. In the past four years more than $2.2 billion worth of property was reused each year. Every dollar's worth of property reutilized is a tax dollar saved. DLA Disposition Services also supports disaster relief at home, and humanitarian assistance and foreign military sales programs.
Selling DoD surplus property. DLA Disposition Services manages the DoD surplus property sales program. Excess property that is not reutilized, transferred or donated may be sold to the public. The property, no longer needed by the government, is only sold if it is appropriate and safe for sale to the general public.
Keeping the environment in mind. DLA Disposition Services manages the disposal of hazardous property for DoD activities, maximizing the use of each item and minimizing environmental risks and costs through monitored compliant disposal.
Special programs. A Resource Recovery and Recycling Program conserves natural resources, reduces waste products and returns revenue to the military services. Through recycling, the Precious Metals Recovery Program significantly reduces the need for DoD to purchase metals such as gold, silver and platinum family metals through recycling of excess and surplus scrap containing precious metals.
Demilitarization. Certain property is demilitarized (i.e., rendered useless for its originally intended purpose). Surplus property with inherent military characteristics must undergo "demil." Offensive and defensive weapons and associated material are demilitarized prior to sale or as a condition of sale.
Support for the U.S. military. DLA Disposition Services supports America’s military wherever they are called to serve. Current contingency missions see DLA Disposition Services civilians serving alongside combat forces in Afghanistan. They are part of the worldwide presence within DoD, with people serving in 16 foreign countries, two U.S. territories (Guam and Puerto Rico) and 41 states. Earlier the activity had a significant presence in Iraq and kept a small contingent in place to support the US Depatment of State until Spring 2014 The total DLA Disposition Services work force numbers approximately 1,455 people. Of those, approximately 332 work at its Battle Creek, Mich., headquarters.
Small Business Ombudsman. The DLA Disposition Services Small Business Ombudsman will receive, review and investigate concerns from small businesses about DLA Disposition Services initiatives and process changes. The Small Business Ombudsman will function in this capacity independent from DLA Disposition Services operational and policy offices and ensure that small business concerns are given fair consideration. The DLA Disposition Services Small Business Ombudsman can be reached at DLADispositionServicesOmbudsman@dla.mil.
See also DAU Continuous Learning Module CLL 051 "System Retirement, Materiel Disposition Reclamation, Demilitarization & Disposal."