Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

Congressional research reportSep 5, 2014

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Defense Surplus Equipment Disposal,

Including the Law Enforcement 1033 Program

(name redacted)

Specialist in Defense Acquisition

September 5, 2014

Congressional Research Service

7-....

www.crs.gov

RS20549

Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

Summary

The effort to dispose of surplus military equipment dates back to the end of World War II when

the federal government sought to reduce a massive inventory of surplus military equipment by

making such equipment available to civilians. (The disposal of surplus real property, including

land, buildings, commercial facilities, and equipment situated thereon, is assigned to the General

Services Administration, Office of Property Disposal.)

The Department of Defense (DOD) through a Defense Logistics Agency (DLA) component

called DLA Disposition Services has a policy for disposing of government equipment and

supplies considered surplus or deemed unnecessary, or excess to the agency’s currently

designated mission. DLA Disposition Services is responsible for property reuse (including

resale), precious metal recovery, recycling, hazardous property disposal, and the demilitarization

of military equipment.

DLA Disposition Services manages the reutilization, transfer, donation and sale of surplus

military property. The Reutilization/Transfer/Donation Program through DLA Disposition

Services establishes a process for property considered no longer needed by DOD to be

redistributed among various groups. Property considered surplus can be reused, transferred,

donated, or sold; potential recipients may include law enforcement agencies, school systems,

medical institutions, civic and community organizations, libraries, homeless assistance providers,

state and local government agencies, veteran’s organizations, and the public. Property that is no

longer needed by the government may be acquired through public sales, if the property is

appropriate and safe for sale to the general public.

Recently, the Law Enforcement Support Program (LESO), also referred to as the 1033 Program,

has been the subject of media reports. Some Members of Congress have expressed concern over

the transfer of surplus weapons from federal programs including the 1033 Program, and the types

of military equipment that can be made available to state and local law enforcement agencies,

particularly in the aftermath of clashes between protesters and police over the August 2014

shooting death incident in Ferguson, MO. On September 9, 2014, the U.S. Senate Homeland

Security and Governmental Affairs Committee will hold a hearing titled “Oversight of Federal

Programs Equipping State and Law Enforcement.”

This report focuses on the disposal of defense surplus property that is delegated to DOD from the

General Services Administration. Law enforcement agencies are a recipient of defense surplus

property, along with many other recipients. For further information on the 1033 Program, see

CRS Report R43701, The “1033 Program,” Department of Defense Support to Law Enforcement,

by (name redacted).

Congressional Research Service

Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

Contents

Background ...................................................................................................................................... 1

Major New Developments ............................................................................................................... 2

Congressional Concerns over the 1033 Program....................................................................... 2

The Temporary Suspension of the Potential Transfer of Surplus Vehicles from DLA to

Law Enforcement Support Programs ..................................................................................... 2

Memorandum of Agreement ............................................................................................... 3

Controlling Legal Authority............................................................................................................. 4

DLA Disposition Services ............................................................................................................... 4

Major Recipients .............................................................................................................................. 5

State and Local Governments .................................................................................................... 5

Law Enforcement Support Office (LESO) and the 1033 Program ............................................ 5

Types of Equipment ............................................................................................................ 6

Equipment Provided to Ferguson, MO and St. Louis County ............................................. 6

Firefighting Support Program.................................................................................................... 6

Humanitarian Assistance Program............................................................................................. 7

Public Sales ............................................................................................................................... 7

Veteran Groups .......................................................................................................................... 7

Other Programs ................................................................................................................................ 8

Past Legislative Activity .................................................................................................................. 8

For Additional Information .............................................................................................................. 9

Contacts

Author Contact Information............................................................................................................. 9

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Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

Background

On September 12, 1972, the Defense Property Disposal Service (the forerunner to DLA

Disposition Services) was established under the Defense Supply Agency (now DLA). Defense

property disposal offices were established worldwide on or near major military installations. DLA

Disposition Services is responsible for property reuse (including the disposal and sale of surplus

and excess defense equipment and supplies), precious metal recovery, recycling, hazardous

property disposal, and the demilitarization of military equipment. Over the past four years,

according to DLA’s website, over $2.2 billion of property was reutilized.12

DLA Disposition Services provides support at major U.S. military installations worldwide.

Headquartered in Battle Creek, MI, the DLA Disposition Services personnel serve in 16 foreign

countries (including the Middle East and Southwestern Asia), 2 U.S. territories (Guam and Puerto

Rico), and 41 states. DLA Disposition Services are provided in field offices in Afghanistan, Iraq,

and Kuwait with teams deploying out to forward operating bases to assist combat units. With over

90 field offices, DLA Disposition Services employs about 1,500 people.

The Reutilization/Transfer/Donation Program establishes a process for inventory considered no

longer needed by the Department of Defense (DOD) to be redistributed among various groups.3

Property disposal means redistributing, transferring, donating, selling, demilitarizing, destroying,

or other “end of life cycle” activities. Disposal is the final stage before the property leaves DOD’s

control.4 In some cases, the act of demilitarization—destroying the item’s military offensive and

defensive capability—accomplishes the intent of disposal.

Property is considered excess when one particular federal agency determines it is not needed for

its particular use, while property is considered surplus when it is no longer needed by the federal

government. Most property turned in to DLA Disposition Services by the military services is

offered for use in other DOD activities and to other federal agencies.

Property considered surplus can be reused, transferred, donated, or sold; potential recipients may

include law enforcement agencies, school systems, medical institutions, civic and community

organizations, libraries, homeless assistance providers, state and local government agencies, and

the public. During FY2008, about 56,000 military organizations and components turned in over

3.5 million items to DLA Disposition Services.5 About half of all surplus items are designated for

the foreign military sales program, and about half are made available to other government

agencies, eligible donees, or sold to the public.6

On July 31, 2008, DLA awarded Liquidity Services, Inc. a contract to be the primary manager for

the receipt, storage, marketing, and disposition of virtually all usable defense surplus property

approved by DOD for sale to the public. The contract had a base term of three years with two

1

http://www.dispositionservices.dla.mil/Pages/About_Disposition_Services.aspx.

From the DLA Disposition Services website at http://www.drms.dla.mil/about.shtml.

3

https://www.dispositionservices.dla.mil/rtd03/faq.shtml.

4

See the Acquisition Community Connection at the Defense Acquisition University, at https://acc.dau.mil.

5

From the DLA Disposition Services website at http://www.drms.dla.mil/about.shtml.

6

For further discussion of excess defense property, and the demilitarization and disposal of surplus military equipment,

see CRS Report RL31675, Arms Sales: Congressional Review Process, by (name redacted); CRS Report RS20428,

Excess

Defense Articles: Grants and Sales to Allies and Friendly Countries, by (name redacted); and CRS Report

RL31686, Demilitarization of Significant Military Equipment, by (name redacted). Another source for

information is the Demilitarization and Disposal section of the Acquisition Community Connection at the Defense

Acquisition University.

2

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Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

one-year renewal options.7 The contract was later extended through February 15, 2013.8 On

September 13, 2012, Liquidity Services announced that DLA had exercised the second of

(potentially) two 12-month extension periods, under its “Surplus Useable Property Sales

Contract” to sell DOD surplus property. The surplus contract’s performance period was extended

through February 13, 2014.9

Major New Developments10

Congressional Concerns over the 1033 Program

Some Members of Congress have expressed concern over the 1033 Program and the types of

military equipment made available to state and local law enforcement agencies, particularly in the

in the aftermath of clashes between protesters and police. The concerns of these Members were

elevated in the aftermath of the August 2014 shooting death incident in Ferguson, MO, and the

widely circulated photographs of heavily armed police using equipment believed to be transferred

from the federal government through the 1033 Law Enforcement Support Program, as well as

from other sources.11 (See section on the Law Enforcement Support Office)

On September 9, 2014, the U.S. Senate Homeland Security and Governmental Affairs Committee

will hold a hearing titled “Oversight of Federal Programs Equipping State and Law

Enforcement.”

The Temporary Suspension of the Potential Transfer of Surplus

Vehicles from DLA to Law Enforcement Support Programs

In May 2014, DLA reportedly began investigating the potential transfer and/or sale of soft

skinned Humvees. In the process of researching any potential challenges or restrictions, the U.S.

Army informed DLA that the engines in these vehicles were not allowed to be “entered into

commerce” as they were not specifically approved as meeting Environmental Protection Agency

7

http://www.liquidityservicesinc.com/company/news/press-releases/1183101/; http://newsok.com/inhofe-securesequipment-deal-for-rural-firefighters/article/4987107.

8

Clabaugh, Jeff. Liquidity Services Get DOD Extension. Washington Business Journal, August 22, 2011,

http://www.bizjournals.com/washington/news/2011/08/22/liquidity-services-gets-dod-extension.html; also Jamil,

Aisha. DOD Extends Liquidity Services Contract for Surplus Usable Property Sales. Washington Exec, August 30,

2011, http://www.washingtonexec.com/2011/08/dod-extends-liquidity-services-inc-contract-for-surplus-useableproperty-sales/.

9

Press Release. Liquidity Services, Inc. Receives Contract Extension for Surplus Used Property Sales, September 12,

2012, http://www.liquidityservicesinc.com/company/news/press-releases/1735034/. Property is offered for sale through

Liquidity Services’ online auction marketplace, at http://www.govliquidation.com/. As of September 5, 2014, CRS

could not confirm the status of the contract. However, Liquidity Services has announced that it will continue to operate

its existing DOD surplus contract to sell all useable surplus assets for the base term ending December 2014, with two

additional one-month renewal options. Accessed online at http://www.streetinsider.com/Corporate+News/

Liquidity+Services,+Inc.+(LQDT)+Withdraws+from+U.S.+DLA+Bidding%3B+Cannot+Determine+Financial+Impact

/9348288.html.

10

This information was provided to CRS via email from DLA Legislative Affairs and the EPA, July 2014.

11

See Redden, Susan. Militarization of police departments focus of congressional hearing. The Joplin Globe, August

24, 2014. Accessed online at http://www.joplinglobe.com/news/article_ff1f6e3a-2be0-11e4-a204-0019bb2963f4.html;

Newhauser, Daniel. Congress Isn’t Ending the Pentagon-to-Police Weapons Program Anytime Soon. National Journal,

accessed online at http://www.nationaljournal.com/congress/congress-isn-t-ending-the-pentagon-to-police-weaponsprogram-any-time-soon-20140814.

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Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

(EPA) Clear Air Act standards. These vehicles were instead granted a National Security

Exemption (NSE) by EPA for military tactical use only dating back to 1988. The NSE is founded

in both statute and regulation.

DLA Disposition Services was unaware of this arrangement between the Army and the EPA. At

the time, DLA was made aware that other vehicles/engines that DLA had previously donated,

transferred or entered into law-enforcement and fire-fighter support programs (1033 programs)

were also not necessarily Clean Air Act compliant, but had received the NSE. Transfer, donation,

and sale could all possibly trigger the statutory prohibition on “entry into commerce” of the NSE

vehicles and engines.

On June 30, 2014, DLA notified the Law Enforcement Support Office (LESO) State Coordinators

and the U.S. Forestry Service of the decision to temporarily suspend release of all vehicles and

equipment with diesel engines pending resolution with EPA. Consequently, release of all vehicles

and equipment with diesel engines was temporarily suspended by DLA Disposition based on the

statutory and regulatory language. Requisitions for other property and equipment continued to be

released.

On June 30, 2014, DLA notified the Law Enforcement Support Office (LESO) State Coordinators

and the U.S. Forestry Service of a decision to temporarily suspend release of all vehicles and

equipment with diesel engines, pending resolution of issues with the Environmental Protection

Agency (EPA). According to several press reports, DOD announced that DLA would end the sale,

donation, and/or transfer of surplus military vehicles to state and local agencies.12 These vehicles

were historically used for law enforcement support and rural firefighting programs.

However, on July 9, 2014, DLA Disposition Services announced that it would continue to make

these military vehicles available to authorized law enforcement and fire-fighting program

recipients. DLA Disposition Services posted the following notice on its website:

Following discussions with the EPA, DLA will immediately resume issuing military

vehicles and equipment with an associated national security exemption (NSE) to

authorized law enforcement agencies and to DOD Fire Fighter Program recipients. EPA

has confirmed that equipment transferred to law enforcement and fire-fighting agencies

through these programs will continue to be covered by any National Security Exemption

(NSE) previously issued by EPA, with the understanding that DLA retains title to the

vehicles and appropriate inventory and other management controls remain in effect. We

are amending our Memoranda of Understanding to reflect this agreement.13

Memorandum of Agreement

The following is a Memorandum of Agreement, provided to CRS by DLA officials during August

2014, on the agreement reached between DLA and EPA on the national security exemption issue.

12

EPA Forces Loss of Surplus Trucks for Fire Departments. Citycode Financial, July 10, 2014,

http://www.citycode.com/2014/07/09/epa-forces-loss-of-surplus-trucks-for-fire-departments/; Glas, Brittany. EPA

Reaches Agreement with Rural Fire Departments. KSN-TV, July 8, 2014, http://ksn.com/2014/07/08/rural-kansas-firedepartments-concerned-over-epa-ruling; Morgan, Rhett. Feds Reach Pact to Restore Surplus Military Equipment to Aid

Rural Firefighters, Tulsa World, July 10, 2014, http://newsok.com/inhofe-secures-equipment-deal-for-rural-firefighters/

article/4987107; and Liquidity Services, Inc. Announces Cessation in Sales for Selected Defense Logistics Agency

Surplus Property Items and Preliminary Third-Quarter Fiscal Year 2014 Results, July 10, 2014, Liquidity Services, Inc.,

http://www.liquidityservicesinc.com/company/news/press-releases/1946354.

13

http://www.dispositionservices.dla.mil/Pages/default.aspx.

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Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

XXI. ADDENDUM

A. As of July 1, 2014, the DLA LESO has implemented policy and procedural changes

which place additional controls on certain excess DOD property with Demilitarization

codes of A and Q (with an Integrity Code of 6). These items will be subsequently referred

to as “National Security Exemption (NSE) restricted DEMIL A and Q6 items. “Section

III-General Terms and Conditions, § G-H, has been amended via Section XXIAddendum, to reflect the additional controls placed on these items.

1. The DLA LESO will maintain a list of National Security Exemption (NSE) restricted

DEMIL A and Q6 items, by National Stock Numbers (NSN), which will be treated as

controlled property.

2. All items falling into this category that were acquired with an MRO/Ship date after

July 1, 2013, will be treated as controlled property, and will not be systematically

archived from the DLA LESO inventory. Law Enforcement Agencies (LEA) are not

authorized to sell NSE restricted A and Q6 items.

3. When an NSE restricted DEMIL A and Q6 item is no longer needed by a Law

Enforcement Agency, the item must be turned back into a DLA Disposition Services

location or transferred to another participating Law Enforcement Agency within the DLA

LESO.

4. For Annual Inventory purposes, Law Enforcement Agencies who obtain or have

obtained NSE restricted DEMIL A and Q6 items after July 1, 2013, must now provide

Serial numbers for these items. In addition, photographs of these items may also be

required, if the item falls into a Federal Supply Group (FSG) of 10, 15, 19 or 23.

5. Law Enforcement Agencies may request to sell items with a DEMIL Code of Q (with

an Integrity Code of 6), which do not fall into the category of NSE restricted items, but

must gain State Coordinator and DLA LESO approval, prior to the actual sale of such

items. These items will not be systematically archived from the DLA LESO inventory.

6. Only excess property with a DEMIL Code of A, which does not fall into the category

of NSE restricted items, will continue to be systematically archived from the DLA LESO

inventory one year from MRO/Ship date. Title for items in this category will continue to

pass to the LEA.14

Controlling Legal Authority

Authority for the disposal of surplus defense property can be found in P.L. 94-519, 10 U.S.C. 381,

which amends the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484),

P.L. 107-117, and DOD Directive 4140.1, Supply Chain Materiel Management Policy; DOD

4160.21-M Defense Materiel Disposition Manual, and DOD 4160.21-M-1 Defense

Demilitarization Manual.15

DLA Disposition Services

DLA Disposition Services manages the reutilization, transfer, donation and sale of surplus

military property. The Reutilization/Transfer/Donation Program through DLA Disposition

Services establishes a process for property considered no longer needed by DOD to be

redistributed among various groups. Property considered surplus can be reused, transferred,

14

15

Version- July 15, 2014.

http://www.acq.osd.mil/log/sci/mat_disposition.htm.

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Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

donated, or sold; potential recipients may include law enforcement agencies, school systems,

medical institutions, civic and community organizations, libraries, homeless assistance providers,

state and local government agencies, veteran’s organizations, and the public.

Finally, DLA Disposition Services manages the DOD surplus property sales program. Property

that is no longer needed by the government may be acquired through public sales, if the property

is appropriate and safe for sale to the general public.

Major Recipients

State and Local Governments

If property cannot be reused or transferred to other federal agencies, it may be donated to state

and local government programs. Each state has designated a “State Agency for Surplus Property

Program,” a local governing authority to receive and distribute all federal surplus property. The

program authorizes “screeners” to handle the logistics, and the state agency may charge a fee for

handling the transaction. Eligible recipients include, but are not limited to, organizations that

promote public health, safety, education, recreation, conservation, and other public needs,

including veterans groups and Native American organizations. Groups that qualify as a “service

education activity” may have a slight priority in the screening process.

Law Enforcement Support Office (LESO) and the 1033 Program

The "1033 Program" was created by Congress in the National Defense Authorization Act for

1997. Section 1033 of the National Defense Authorization Act for FY1997 authorized the transfer

of property from DOD to federal and state agencies that would be suitable for use by agencies in

law enforcement activities, including counter-drug and counter terrorism activities.16This property

is considered excess to the needs of the Department of Defense.

LESO administers 10 U.S.C. Section 2576a, which transfers excess DOD equipment to federal

and state law enforcement agencies through the 1033 Program.17 DLA estimates that since 1990,

more than $4.2 billion worth of property has been transferred; in FY2011 alone, a record $502

million worth of property was transferred to federal and state law enforcement agencies.18It

authorizes the Secretary of Defense to provide material support to authorized federal and state

law enforcement agencies in the form of transfers of articles suitable for use in counter-drug and

counter-terrorism activities. These are drawn from Department of Defense (DOD) stocks deemed

excess to military needs.

The current statute was preceded by a 1990 statute, Section 1208 of the National Defense

Authorization Act for 1990 and 1991 (P.L. 101-189), which temporarily authorized transfers of

defense equipment to law enforcement agencies for counter-drug enforcement use.19The 1997 act

made the authority permanent and expanded it to include counter-terrorism activities. The statute

16

P.L. 104-201, enacted on September 23, 1996, is codified in 10 U.S.C. §2576a.

https://www.dispositionservices.dla.mil/rtd03/leso/.

18

See LESO website at https://www.dispositionservices.dla.mil/rtd03/leso/.

19

USA Today reported on August 24, 2014 that “DLA estimates it has transferred $5.1 billion in surplus equipment

including weapons, vehicles, office equipment, clothing, helicopters and boats to state and local police agencies under a

1991 law designed to combat the illegal drug trade.” Accessed online at

http://www.usatoday.com/story/news/2014/08/23/white-house-review-military-equipment-local-police/14506131/.

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Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

requires the Secretary of Defense to consult with the Attorney General and the Director of

National Drug Control Policy in carrying out its provisions. It also allows the Secretary to transfer

property only if (1) it is drawn from existing DOD stocks, (2) the receiving agency accepts the

material "as-is, where-is," (3) the transfer is made without expending DOD procurement funds,

and (4) all subsequent costs are borne by the receiver. Nevertheless, the Secretary may transfer

the property without charge to the recipient.

Types of Equipment

DLA has provided the following information in both conference call and email correspondence

with CRS during August-September 2014.

DLA states that all of the military equipment transferred through the LESO has a specific military

specification, and that 88% of the equipment is considered non-tactical equipment. Such nontactical equipment may include (but is not limited to) office equipment, chairs, boots, generators

and tents. Approximately 12% of the equipment is considered tactical, and may include (but is not

limited to) weapons, night vision equipment, and tactical vehicles. DLA states that all of the

equipment requisitioned under the 1033 Program has either a commercial similarity or can be

requested through a grant.20

In addition, the 1122 Program (FY1994 National Defense Authorization Act) authorizes state and

local governments to purchase law enforcement equipment for counter-drug activities.21 Each

state appoints a point of contact (POC) for this program. The POC may purchase items from any

of the four inventory control points managed by DLA. To order items, applicants are to contact

their State Agency for Surplus Property Program.

Equipment Provided to Ferguson, MO and St. Louis County

According to DLA, the Ferguson, MO and St. Louis County law enforcement programs were

provided the following equipment. since July 2013, under the 1033 Program.

Equipment provided to Ferguson, MO

Equipment provided to St. Louis County, MO

1-Trailer

6 - .45 caliber weapons

1- Generator

12 -M16 rifles

2-High Mobility Multipurpose Vehicles

3- Helicopters

7- High Mobility Multipurpose Vehicles

2 -Night vision equipment

2 -Robots

Other general property

Firefighting Support Program

Title 10 U.S.C. 2576b authorizes the U.S. Department of Agriculture’s Forest Service to manage

the DOD firefighting property transfers. An interagency agreement between DOD and the Forest

Service is under the authority of the Economy Act, 31 U.S.C. 1535. The Federal Excess Personal

20

21

This information was provided by DLA to CRS in September 2014.

http://www.dla.mil/logisticsoperations/DHS/Pages/DLA1122.aspx.

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Property (FEPP) Program, administered through the Forest Service, provides equipment to state

and territorial forestry programs for wild land and rural firefighting.22

Humanitarian Assistance Program

Title 10 U.S.C. 2557 authorizes DOD to provide excess property for humanitarian relief,

domestic emergency assistance, and homeless veterans’ assistance, as coordinated through the

Defense Security Cooperation Agency, Office of Humanitarian and Refugee Affairs.23

Public Sales

Property not reused, transferred, or donated can be sold to the general public through public

auctions and sealed bidding. Munitions, explosives, and strategic items are not sold.

Veteran Groups

There are at least two ways that veteran groups can qualify for eligibility for DOD surplus

property.

If property cannot be reused or transferred to other federal agencies, it may be donated to state

and local government programs. Each state has designated a State Agency for Surplus Property

Program, a local governing authority to receive and distribute all federal surplus property. The

program authorizes “screeners” to handle the logistics, and the state agency may charge a fee for

handling the transaction. Eligible recipients include, but are not limited to, organizations that

promote public health, safety, education, recreation, conservation, and other public needs,

including veteran’s groups and Native American organizations. Groups that qualify as a “service

education activity” may have a slight priority in the screening process.24

Property can also be acquired in accordance with Public Law 80-421, which authorizes the

Secretaries of the Military Departments to donate or loan certain types of surplus military

equipment to recognized, selected recipients.25 The DLA Disposition Services website lists the

following organizations as authorized to acquire, through donation or loan, obsolete or

condemned combat material, books, manuscripts, works of art, drawings, plans and models for

historical, ceremonial, and display purposes:

•

•

•

•

•

•

Veteran organizations;

Soldiers Monument Associations;

State Museums;

Incorporated Museums;

Municipal Museums, and

Sons of Veterans Reserves.26

22

http://www.fs.fed.us/fire/partners/fepp/.

See https://www.dispositionservices.dla.mil/rtd03/miscprograms.shtml; also, http://www.state.gov/t/pm/iso/

c21542.htm.

24

https://www.dispositionservices.dla.mil/rtd03/index.shtml.

25

See 10 U.S.C. 2572, Documents, Historical Artifacts, and Condemned or Obsolete Combat Materiel: Loan, Gift or

Exchange, at http://www.law.cornell.edu/uscode/text/10/2572.

26

https://www.dispositionservices.dla.mil/rtd03/veterans.shtml.

23

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Other Programs

There are other programs which may assist organizations which may fail to qualify for DLA

Disposition Services property as a DOD, federal, or donation customer. Such programs include

(but are not limited to) museums, educational institutions, National Guard and Senior Reserve

Officer Training Corps units, and the Civil Air Patrol.27

Past Legislative Activity

P.L. 112-239 (H.R. 4310, 112th Congress) contained at least three provisions that my impact the

policy governing the distribution of DOD surplus or excess property.28 Section 1051 expanded the

Secretary of the Army’s authority to loan or donate small firearms, determined to be excess, for

use during funerals and other ceremonial purposes;29 Section 1053 granted the Secretary of

Defense the authority to transfer mine-resistant, ambush-protected vehicles and spare parts, to

nonprofit U.S. humanitarian, demining organizations for training purposes,30 and Section 1091

granted DOD the authority to transfer certain aircraft, with exceptions, to the Secretary of

Agriculture and the Secretary of Homeland Security for use by the Forest Service and the U.S.

Coast Guard.31

P.L. 112-81 (H.R. 1540, 112th Congress) contained a provision (Section 361) that clarified a

previously enacted provision (Section 346 of the Ike Skelton National Defense Authorization Act

for FY2011, P.L. 111-383) which made available for sale any small arms ammunition and small

ammunition components which were in excess of military requirements. Section 361 amended the

conditions that would govern the commercial sale of small arms ammunition components and

fired cartridge cases.

H.Rept. 112-329, the conference report that accompanied H.R. 1540, offered the following

clarification.

The conferees note that the intent of Section 346 of P.L. 111-383, as amended, is to

clarify that the only fired cartridge cases (referred to as expended small arms cartridge

cases) subject to the provision are intact expended small arms cartridge cases and that the

provision does not apply outside the continental United States or overrides established

Department of Defense (DOD) trade security controls or explosives safety controls. The

conferees note that the DOD would be permitted to demilitarize and recycle expended

small arms cartridge cases covered by the provision so long as there is not a significant

decrease in intact expended small arms cartridge cases being made available for sale and

there is no evidence that commercial demands are not generally being met. The conferees

note that based on its current force structure and training requirements, the DOD

currently makes approximately 6-8 million pounds of intact (non-demilitarized) expended

small arms cartridge cases available each year for commercial sales. The conferees

recognize that the amount made available may change as the DOD’s force structure or

training requirements change. The conferees note that the DOD would be responsible for

27

For further information, see https://www.dispositionservices.dla.mil/rtd03/index.shtml.

P.L. 112-239 (H.R. 4310) was enacted into law on January 2, 2013.

29

Section 1072. Expansion of Authority of the Secretary of the Army to loan or donate excess small arms for funeral

and other ceremonial purposes. H.R. 4310, Subtitle G., Miscellaneous Authorities and Limitations.

30

Section 1075. Authority to Transfer Surplus Mine-Resistant Ambush-Protected Vehicles and Spare Parts. H.R. 4310,

Subtitle G., Miscellaneous Authorities and Limitations.

31

H.R. 4310, Section 1091. Transfer Excess Aircraft to Other Departments of the Federal Government.

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Defense Surplus Equipment Disposal, Including the Law Enforcement 1033 Program

assessing commercial demands for the purpose of implementing this requirement; the

conferees understand that the DOD may choose to conduct market surveys or studies to

assess commercial demands for this purpose.32

In the 111th Congress, the Ike Skelton National Defense Authorization Act for FY2011 (P.L. 111383, H.R. 6523) contained a provision (Section 1072) that amended Title 10 Section 2576a to

broaden the categories of state and local organizations that would be eligible for surplus military

equipment to include state and local law enforcement, firefighting, homeland security, and

emergency management agencies.33 Also, the Affordable Reloaded Munitions Supply (ARMS)

Act of 2009 (H.R. 2193) was introduced in the House on April 30, 2009. The bill would have

prohibited the Secretary of Defense from implementing any policy that prevents or places undue

restriction on the sale of “intact spent military small arms ammunition casings” to certain

domestic suppliers. The bill had 41 co-sponsors, and was referred to the House Armed Services

Committee.

For Additional Information

The DLA Customer Contact Center is open 24 hours a day, 7 days a week, at /redacted/, or

at DLAContactCenter@dla.mil.For more information about DLA Disposition Services, see

http://www.dispositionservices.dla.mil/index.shtml.

Author Contact Information

(name redacted)

Specialist in Defense Acquisition

/redacted/@crs.loc.gov, 7-....

32

Subtitle G–Other Matters. H.Rept. 112-329, H.R. 1540.

Title 10 U.S.C. 2576a, Surplus Military Equipment: Sale to State and Local Law Enforcement, Firefighting,

Homeland Security, and Emergency Management Agencies and Firefighter Agencies.

33

Congressional Research Service

9

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