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RCED-84-24 1 (1983-10-19)

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BY THE COMPTROLLER GENERAL

Report To The

Chairman, Subcommittee On Preparedness

Committee On Armed Services

United States Senate

OF THE UNITED STATES


Conditions That Limit Using Barter

And Exchange To Acquire National

Defense Stockpile Materials


The National Defense Stockpile is main-
tained to prevent U.S. dependence on
foreign sources of strategic and critical
materials during national emergencies.
Limited appropriated funds to meet stock-
pile goals have created interest in barter and
exchange as alternatives to cash purchases.
These alternatives involve trading federal
property for needed stockpile materials.

Federal agencies have the legislative author-
ity to use barter and exchange. However,
they have used these methods sparingly
because of restrictive legislative require-
ments and competing national interests,
such as programs having potential needs for
commodities that could be bartered. Thus,
the current potential for using barter and
exchange appears to be limited. GAO recom-
mends that the Emergency Mobilization
Preparedness Board, as part of its review of
national defense stockpile goals and poli-
cies, assess the role barter and exchange
can play in meeting stockpile needs and
propose legislative changes if necessary.


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  GAO/RCED-84-24
OCTOBER 19, 1983