I
105TH CONGRESS
1ST SESSION
H. R. 1850
To require the Secretary of Defense to plan and carry out pilot projects
to test various ‘‘best business practices’’ for defense inventory management.
IN THE HOUSE OF REPRESENTATIVES
JUNE 10, 1997
Mrs. MALONEY of New York (for herself, Mr. DEFAZIO, Mr. BARRETT of Wis-
consin, Ms. SLAUGHTER, Ms. MCKINNEY, Mr. JACKSON of Illinois, Mr.
MCGOVERN, Ms. NORTON, and Mr. ROTHMAN) introduced the following
bill; which was referred to the Committee on National Security
A BILL
To require the Secretary of Defense to plan and carry out
pilot projects to test various ‘‘best business practices’’
for defense inventory management.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PILOT PROJECTS TO TEST ‘‘BEST BUSINESS
PRACTICES’’ FOR DEFENSE INVENTORY MAN-
AGEMENT.
(a) 
REQUIREMENT
TO
CONDUCT
PILOT
PROJECTS.—The Secretary of Defense shall conduct pilot
projects for the purpose of testing various techniques to
improve the inventory management of the Department of
Defense. The Secretary shall conduct the projects in ac-
cordance with the plan developed under subsection (b) and
shall begin implementation of the projects not later than
October 1, 1998.
(b) PLAN.—The Secretary of Defense shall develop
a plan for carrying out the pilot projects. The plan shall
contain specific goals, including a schedule, for improving
inventory management, and shall provide for the following
pilot projects:
(1) A pilot project to be carried out by each
military department to test in an integrated manner
(where feasible) the following techniques for depot-
level maintenance and repair workloads at one
depot-level activity of the department:
(A) The use of cellular manufacturing
techniques, which involves bringing all the re-
sources (including mechanics, equipment, sup-
port personnel, and inventory) needed to com-
plete repairs to one location.
(B) The elimination of excess spare parts
inventory and the rapid initiation of repair ac-
tions.
(C) The use of private entities for logistics
services such as warehousing, distribution, and
delivery of spare parts.
(2) A pilot project to be carried out at each
military department to test, with respect to hard-
ware items (such as bolts, valves, and fuses), the use
of innovative supplier partnerships that give a sup-
plier the responsibility to manage, store, and distrib-
ute inventory on a frequent, regular basis (some-
times referred to as a ‘‘prime vendor’’ technique).
(c) ACCESS BY COMPTROLLER GENERAL.—The Sec-
retary of Defense shall provide representatives of the
Comptroller General with access to information available
during the development of the plan under subsection (b).
(d) SUBMISSION OF PLAN TO CONGRESS.—Not later
than 180 days after the date of the enactment of this Act,
the Secretary of Defense—
(1) shall submit the plan developed under sub-
section (b) to the Committees on Government Re-
form and Oversight and on National Security of the
House of Representatives and the Committees on
Governmental Affairs and on Armed Services of the
Senate; and
(2) shall provide a copy of the plan to the
Comptroller General.
(e) ASSESSMENT BY COMPTROLLER GENERAL.—Not
later than 60 days after receipt of the plan, the Comptrol-
ler General shall transmit to the committees referred to
in subsection (d)(1) an assessment of the plan, including
such recommendations as the Comptroller General consid-
ers appropriate.
(f) REPORTS ON RESULTS OF PROJECTS.—Not later
than six months after the pilot projects begin to be imple-
mented, the Secretary of Defense shall submit to the com-
mittees referred to in subsection (d)(1) a progress report
on the pilot projects. Not later than one year after the
pilot projects begin to be implemented, the Secretary of
Defense shall submit to such committees a final report on
the pilot projects. Both the progress report and the final
report shall include—
(1) an estimate of cost savings and other bene-
fits achieved by each pilot project;
(2) an analysis of the feasibility of using the
techniques demonstrated in each pilot project
throughout the Department of Defense; and
(3) such recommendations as the Secretary of
Defense considers appropriate.
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