Information Papers

Contractor-Acquired Government-Owned Equipment

What is it?
Hundreds of thousands of potentially reusable, durable, commercial or “White” items have been purchased in support of current ongoing military deployments worldwide. In support of the Iraq and Afghanistan engagements alone, the Logistics Civil Augmentation Program (LOGCAP) has acquired more than 550,000 different commercial line items with an acquisition purchase price of more than $3.6 Billion.

What has the Army done?
In recognition of the enormous value and potential for reuse of this property, and in an effort to be good stewards of the U.S. taxpayer’s dollars, the Army ordered an independent and comprehensive business case analysis (BCA) to lead the effort to ensure accountability and determine the most effective disposition of “White” contractor-acquired government-owned (CAGO) equipment. The review process began in July 2007, and this report represents the culmination of the BCA.

The Army contracted with Information Manufacturing Corporation (IMC) for a complete, comprehensive BCA to provide Army leadership with the information necessary to determine the most effective disposition of CAGO equipment once it is declared excess. A government-furnished item list (KBR, LOGCAP III) containing more than 550,000 line items valued at more than $3.6 Billion new acquisition cost was used as the basis of information. The IMC-led team conducted research, developed facts and assumptions, identified disposition options, performed comparisons, and conducted a thorough analysis of the options for the development of their final recommendations.

What continued efforts does the Army have planned for the future?
As White equipment becomes excess or unserviceable, it will be technically inspected and validated against requirements and retained for future use, sold on the commercial market, or simply disposed of within the existing system. Present policies allow some flexibility; however, the policy will continue to be analyzed, revised, and /or developed so as to avoid potential problems in supporting our Soldiers.

Why is it important to the Army?
The BCA determined that approximately 87 percent of all items were excluded from repatriation (e.g., because of Department of Agriculture restrictions, Environmental Protection Agency prohibitions). While there are three disposition alternatives for the equipment, the most beneficial is the transfer/scrap/sell-as-is alternative (85 percent of the inventory), which will cost the Army an estimated $12 Million to perform (primarily transportation costs) and return approximately $36 Million to the U.S. Treasury.

Ms. Kimberly Morris (703)692-5101