Defense Reutilization and Marketing Service (DRMS)
Defense Reutilization and Marketing Service (DRMS) is a primary level field activity of the Defense Logistics Agency (DLA). Its mission is to provide the Department of Defense (DoD) with services for the disposal of material no longer needed for national defense, comply with legislative and regulatory requirements, protect the public good from dangerous defense items, and to pursue maximum value for tax dollars. This mission includes responsibility for property reuse (including resale), hazardous property disposal, demilitarization, precious metals recovery and recycling program support.
In fiscal 2000, nearly $4 billion worth of property was reutilized, transferred or donated. Property that is not reutilized, transferred or donated may be sold to the public as surplus. The National Sales Office sells large quantities of widely advertised, high-value property, such as aircraft parts, primarily through sealed bid. We are also partnering with private industry to sell property. Levy-Latham Global has been contracted to sell commodities such as machine tools, hardware and material handling equipment.
Local sales are held at DMRS field offices, called Defense Reutilization and Marketing Offices (DRMOs), located on or near U.S. military installations worldwide. Items are usually sold in smaller quantities that appeal to local buyers. These sales are either held through bid or auction. Retail, fixed-price sales are offered at some DRMOs, aimed at customers interested in buying inexpensive items for personal use. DRMS also offers a sales service for those DoD customers who have direct sales authority (such as under the Exchange Sale Program). For a modest percentage of the proceeds, DRMS will perform all merchandizing, advertising and contracting functions, providing the DoD property holder peace of mind that all laws and regulations are followed.
As of July 2001, DMRS had a worldwide work force of approximately 1,920 civilians, which includes 11 military personnel. The Battle Creek, Mich. headquarters staff numbers 361. The 97 DRMOs are located in 39 states and 13 foreign countries. DRMS International, collocated in Battle Creek effective mid-2001, manages operations that stretch across 11 time zones. This includes all DRMOs in Europe and in the Pacific regions.
The Defense Reutilization and Marketing Service was established in 1972, but the services it provides the Department of Defense date back to the end of World War II. Huge amounts of surplus property had to be disposed of after the war ended. Organizations were created to reduce the stockpile, but the return on their sales was small, and they were soon disbanded. Property disposal later reappeared through the Federal Property and Administration Services Act of 1949. The act delegated surplus property to executive agencies, allowing DoD to control its surplus property. Each military service was tasked to develop its own program.
Sen. John L. McClellan (D-Ark) chaired hearings in 1972 to assess their efforts. The "McClellan Report" recommended centralizing disposal for better accountability. On Sept. 12, 1972, the Defense Property Disposal Service (DPDS) was established under the Defense Supply Agency (now the Defense Logistics agency-DLA) to accomplish this mission. Defense Property Disposal Offices (DPDOs) were established worldwide on or near major military installations.
The Defense Reutilization and Marketing Service awarded a seven-year contract 13 June 2001 to Surplus Acquisition Venture, LLC to sell a variety of military surplus items. The contract represents the second phase of DRMS' Commercial Venture program, also known as "CV2." Under the terms of the contract Surplus Acquisition Venture, LLC becomes a private vendor for usable military surplus property in categories including aircraft parts, vehicles, clothing and textiles, medical items, furniture, commercial kitchen equipment and much more. Approximately $23 billion worth of equipment should be sold during the term of the contract. The company has established a wholly owned subsidiary, Government Liquidation, LLC to act as the purchaser and re-seller of property under the contract. This is the largest sales privatization project ever by DRMS and is expected to generate millions of dollars of additional revenues from the sale of surplus military assets to the U.S. Treasury.
