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News | Nov. 1, 2025

DLA Disposition Services: Reutilization as a source of supply

By Angela Wilbur DLA Disposition Services

For decades, military forces have relied on a systematic approach to targeting and engaging enemy forces, known as the "Kill Chain," or F2T2EA sequence: Find, Fix, Track, Target, Engage, and Assess.[1]  The ultimate goal of warfare is to create significant combat effects, which can be either kinetic, such as destroying an enemy missile launcher with a precision-guided bomb, or non-kinetic, like disrupting an adversary's radar systems through electronic jamming. To achieve significant combat effects, military forces must execute a seamless kill sequence.  First, they must identify and locate targets, and then rapidly fix their position or maintain continuous tracking.  Next, they must precision-target and engage the enemy using a range of advanced military assets.  Finally, they must conduct a thorough assessment of the attack's outcome to determine its effectiveness.  However, the success of these complex operations depends on a critical enabler: the availability of functional weapons systems and adequate spare parts.  Without a reliable supply of these essential resources, military forces are hindered in their ability to execute their missions, and the entire Kill Chain sequence is compromised.  This is where a well-oiled and efficient Supply Chain proves indispensable, ensuring that military forces have the necessary resources to carry out their operations with speed, precision, and effectiveness.

The Joint Logistics Enterprise (JLEnt) supply chain system is a complex and critical system that enables the US military to acquire, maintain, and sustain its forces and equipment.  There are multiple, separately managed supply chains that focus on specific commodities that make up the entire DoD supply chain, which consists of a wide range of activities, including Procurement, Logistics, Maintenance, and Supply Chain Management.  For the purposes of this paper, these supply chains will be referred to simply as the military supply chain. The Jent is continually seeking ways to optimize its logistics and supply chain operations to support the warfighter, and one often overlooked source of supply by the Military Services, is the DLA Disposition Services Reutilization process.  In fact, historically, only about 3% of the property DLA Disposition Services receives is eventually reutilized by customers ranging from the Military Services, Special Programs, and eligible Federal, State, and Local agencies. Reutilization can provide a rapid and cost-effective means of acquiring necessary materials and equipment for free between governmental entities.  Since 1973, DLA’s Disposition Services’ first mission priority is to reutilize as much excess property as possible to support the warfighter. However, that proves difficult when the warfighter doesn’t realize that DLA Disposition Services exists, not just to take their excess equipment, but to provide a variety of valuable, free-issue equipment.  Per the Defense Material Disposition: Reutilization, Transfer and Sale of Property, DOD Manual 4160.21, Volume 3, DoD is required to reutilize DoD excess property to the maximum extent feasible.[2]  The DoD Manual does not, however, state how this must be done, only that DLA Disposition Services provides asset referrals via front-end screening.  It does not mandate the use of DLA Disposition Services as a major source of supply via Reutilization.  This white paper introduces the idea that the DLA Disposition Services Reutilization process should be fully integrated into the Supply Chain as another primary source of supply and provides recommendations for implementation. 

Supply Chain Concerns

The military supply chain is facing unprecedented risks due to the current global economy and Great Power Competition.  It is now common knowledge that China's dominance in critical materials and components has created significant challenges for the U.S., making it difficult to acquire necessary resources.  U.S. reliance on global supply chains, which are often obscure and vulnerable to disruption, has created a range of risks, including:

  1. Material shortages: China's control over critical materials and components has led to shortages and stockpiling, making it challenging to maintain a stable supply of essential resources.[3]
  2. Counterfeiting and tampering: The risk of counterfeit or tampered components entering the supply chain is high, which could compromise the safety, security, and effectiveness of military equipment and systems.[4]
  3. Cyber threats: The increased reliance on digital technologies and connected systems has created new vulnerabilities to cyber threats, which could disrupt or compromise the supply chain.[5]
  4. Geopolitical tensions: The Great Power Competition has created an environment of heightened tensions, which could lead to trade wars, sanctions, or other forms of economic coercion that disrupt global supply chains.[6]

To effectively mitigate these risks, the JLEnt must pursue a proactive, comprehensive strategy in four critical areas. First, it should broaden and diversify its supplier base to reduce vulnerabilities associated with overreliance on single sources. Second, it must enhance supply chain visibility and transparency across the DoD to ensure greater resilience and responsiveness. Third, it should prioritize investments in domestic production capabilities for critical materials and components, thereby strengthening national security and industrial independence. Finally, it must implement and maintain robust cybersecurity measures to safeguard supply chain integrity against evolving threats. By addressing these risks, the JLEnt can reduce its vulnerability to supply chain disruptions and ensure the continued readiness and effectiveness of its military forces. DLA Disposition Services is here to help, partly, through Reutilization.

DLA Disposition Services Reutilization and the Supply Chain

The JLEnt’s Reutilization program is governed by various regulations and policies, including the Federal Property and Administrative Services Act of 1949, Code of Federal Regulations Title 32, the National Defense Authorization Act, and DoD Manual 4160.21.  These sources provide a foundation for understanding the policies, procedures, and best practices related to Reutilization.  DLA Disposition Services was designated as the agency that performs Reutilization, and it plays a critical role in mitigating supply chain risks through Reutilization.  Here are some ways DLA Disposition Services can help:

  1. Reutilization of excess assets: DLA Disposition Services reutilizes excess military equipment, vehicles, and other assets, reducing the need for new purchases and minimizing reliance on external suppliers.  This approach helps to:
    • Reduce lead times and wait times for critical components,
    • Decrease the risk of supply chain disruptions due to supplier insolvency or geopolitical tensions, and
    • Lower costs associated with purchasing new equipment.
  2. Extension of equipment life: By reutilizing and refurbishing existing equipment, DLA Disposition Services can help the military services extend the life of assets, reducing the demand for new equipment and minimizing the risk of obsolescence.  This approach helps to:
    • Reduce the risk of equipment failures and downtime,
    • Decrease the need for costly repairs or replacements, and
    • Minimize the environmental impact of disposing of excess equipment.
  3. Supply chain diversification: DLA Disposition Services can help diversify the supply chain by identifying alternative sources of critical components and materials.  This approach helps to:
    • Reduce reliance on single suppliers or geographic regions,
    • Minimize the risk of supply chain disruptions due to supplier concentration, and
    • Increase the resilience of the supply chain to external shocks.
  4. Data-driven decision making: DLA Disposition Services can provide valuable data and insights on equipment turn-ins, condition, and Reutilization demand, enabling more informed decision making and:
    • Optimized inventory management and procurement strategies,
    • Reduced risk of overstocking or understocking critical components, and
    • A more efficient and effective supply chain.
  5. Support for readiness and modernization: By reutilizing and refurbishing existing equipment, DLA Disposition Services can help support military readiness and modernization efforts, ensuring that critical assets are available and functional when needed.

Reutilization offers several advantages over traditional sources of supply.  One is the absence of lead time, as materials and equipment are already in our inventory.  This allows for rapid requisition and deployment, supporting the warfighter's need for timely and reliable logistics support.  Additionally, Reutilization supports supply and repair by providing a source of spare parts and materials, reducing the need for new procurements and minimizing waste.  When the JLEnt leverages these capabilities, DLA Disposition Services plays a vital role in mitigating supply chain risks and supporting the overall readiness and effectiveness of the military.

DLA Disposition Services also has a unique advantage: access to the government’s entire legacy of property spanning decades of acquisitions and operations.  Since the agency receives all types of property from across the military and other federal entities, the agency's inventory is a treasure trove of excess and surplus assets, including construction equipment, vehicles, weapon systems, aircraft, repair parts, and supplies, many of which are available for Reutilization, transfer, or donation (RTD).  While items with certain demilitarization codes are exempt from RTD, most of the property is fair game, making DLA Disposition Services the go-to destination for the Military Services, DoD Special Programs, and Federal, State, and Local agencies seeking to tap into this vast inventory of excess and surplus assets. This extensive inventory provides a valuable source of ready-to-use components and repair parts, enabling the military, and other customers, to fill backorders, reduce downtime, eliminate unnecessary procurement lead times, and optimize the availability of critical equipment.

Understandably, stakeholders may have questions regarding the alignment of DLA Disposition Services’ inventory to mission need across the services, including:

  • How in demand is current inventory?
  • What percentage of the property is up to current standard and usable with today's technology?
  • How well does the current inventory fill orders for rare, hard to find, or backordered material?

To address those questions, we’ll explore current inventory information and provide real world examples in the next section.

Inventory Analysis

Current inventory demand varies significantly across categories and is truly relative in this situation. The DLA Disposition Services inventory is the epitome of the saying “one man’s trash is another man’s treasure.” The demand for current inventory is difficult to gauge because we never know what property will be turned in, but we can look at how much property received was issued out via RTD. This is what we call the Reutilization rate. DLA Disposition Services began analyzing Reutilization rates in FY25 as part of the 2025 Strategic Plan initiative to improve warfighter readiness through increased Reutilization. At the beginning of the fiscal year, the Reutilization rate was around 3% of all turn-ins. By making targeted adjustments through the receipt process and increasing the percentage of property made available for RTD, as of September 2025, the rate has trended up to 4.52%. However, there is still much room for improvement.

Understanding the percentage of property suitable for current standards can be answered by reviewing the supply condition code (SCC) of property in inventory. Property is assigned a condition code at turn-in based on what the military unit determines. Correctly assigned SCCs can indicate that property is serviceable and immediately usable, needs repair or depot level maintenance, is only good for parts, or is scrap (see Appendix 1 for list of supply condition codes). Without accurate condition codes, an activity requesting excess property from DLA Disposition Services will not know if the property will meet its requirement.[7] The figure below shows FY25 to Date Receipts broken down by Supply Condition Code:

FIGURE 1. FY25 to Date Receipts by Supply Condition Code

Supply Condition Code

Quantity of DTIDs per SCC

A

223,393

B

99,487

C

1,405

D

4,169

E

3,279

F

299,875

G

34,998

H

1,406,367

K

632

L

32

Q

24,050

S

227,391

 

The data shows that DLA Disposition Services receives primarily SCC F and H property, 73.4% to be exact. However, history tells us that it is simply a mechanism customers use to clear their property books. Much of the property in SCC F and H conditions still have usable life to someone. DLA Disposition Services’ job is to find that someone Regardless of SCC, the DLA Disposition Services field team evaluates the property at receipt, determines its general usability, and either puts it on the shelf with its current SCC, or downgrades it. This is called the On-The-Shelf (OTS) rate and is also tracked as part of the Strategic Plan initiative to ensure the agency is making an effort to put as much of the right property on the shelf as possible. As an important note, DLA Disposition Services lacks the specialized testing and inspection capabilities necessary to upgrade an item's SCC, though downgrades remain possible when warranted. This creates a critical dependency on initial accuracy: since property enters the RTD cycle with its original assigned SCC, customers must rely on this designation when making requisition decisions, despite potential inaccuracies. While photographs provide valuable visual verification of actual condition — a topic addressed in subsequent sections — the integrity of the entire process hinges on military units’ precision when determining SCC during the initial turn-in phase.

The inventory's effectiveness in filling critical supply gaps is evident in many examples, but sometimes difficult to nail down with hard data. Since the DLA Disposition Services inventory is in a constant 42-day turnover cycle and automated tools do not yet exist to make the order fulfillment process automatic, the agency relies on field team members, Disposal Service Representative (DSRs), military service liaisons, and the RTD headquarters team to bridge the gap where there are critical needs. Work is currently being done to connect DLA and military service backorders to the receipt process but more needs to be done to make the Reutilization backorder fulfillment process second nature and automated. Moreover, assessing the value of reusable stock in terms of current technology and usability standards can be misleading. Obsolete or out of use property for one unit may be just what another needs to perform a current mission or operate a training function.

Nevertheless, as an example, in 2024, an Army unit turned in a Mobile Command Center which was quickly picked up by the Naval Air Warfare Center Aircraft Division at Naval Air Station Patuxent River, Maryland, saving $1.3 million in original acquisition value to the Navy.[8] In another example, DLA Disposition Services and DLA Distribution collaborated to rapidly fulfill the Navy's urgent need for 48 radar transponders worth $2.8 million. When the Naval Air Systems Command contacted DLA requesting the transponders that the Air Force was turning in at Warner Robins, Georgia, both DLA organizations expedited the normal process. Through quick coordination, DLA processed the transponders into Disposition inventory within 24 hours and delivered them to the Navy within three working days.[9]

The alignment of DLA Disposition Services inventory— the Reutilization supply—to mission needs depends on three critical factors: what property is turned in, what capabilities are required, and which organizations need them. As mentioned, what makes our inventory particularly valuable is its evolving composition. While we continue to receive legacy equipment with outdated technology, we're increasingly seeing cutting-edge assets that reflect the rapid pace of technological advancement. Items like unmanned aerial systems and other emerging technologies are becoming more prevalent in our inventory, offering mission-relevant capabilities that support both current operations and future requirements across diverse mission sets.

To provide further analysis, we will dig into the wide range of Class IX parts that can be reutilized to support the repair and maintenance of current military systems. As an example, between October 2024 and September 2025, DLA Disposition Services received over 2.3M DTIDs accounting for 1.6B pieces of property with almost $244B in acquisition value. Of that property, 18,045 DTIDs were available for a subset of Class IX Repair Parts and Components based on Federal Supply Class (FSC) 4900 National Stock Numbers (NSNs) relating to Motor Vehicle Maintenance and Repair Shop Specialist Equipment alone throughout the FY. FSC 4900 includes NSNs such as lifting and handling equipment, diagnostic and testing equipment, tire and wheel service equipment, lubrication and fluid exchange equipment, brake service equipment, exhaust system equipment, body repair equipment, and other specialized tools. By leveraging this inventory, military units can accelerate repair and maintenance activities, ultimately enhancing operational readiness and supporting the effective execution of military missions. Additionally, RTD is not limited to repair parts; underfunded agencies or those that are simply looking to save taxpayer dollars and require operable equipment can take advantage of Reutilization to supply themselves with property ranging from desks and computers to HMMWVs, firetrucks, or generators. A few examples of recent requisitions supporting these efforts are in Appendix 2.

DLA Disposition Services has consistently achieved impressive results in reutilizing excess property.  Figure 2 highlights the agency's notable Reutilization statistics over the past three fiscal years, as well as the current fiscal year to date, showcasing a compelling trend of success in redirecting valuable assets back into the military's supply chain.  This data underscores the significant contributions of DLA Disposition Services in supporting military readiness, reducing waste, and promoting fiscal responsibility.

 

Figure 2. Historical Requisition Data

 

Requisitions

QTY

Acquisition Value

FY25 (10/1/24 through 9/23/25)

 104,985

 2,318,454

 $1,697,468,642.75

FY24

79,659

 2,420,775

 $1,682,829,788.24

FY23

87,928

 3,267,576

 $1,395,699,814.23

FY22

121,628

 5,023,245

 $1,538,122,193.75

 

Further, between October 2024 and September 2025, DLA Disposition Services achieved significant Reutilization milestones, with the top 25 Federal Supply Classes (FSCs) by acquisition value accounting for over 21K DTIDs, 373K line items, and totaling over $1.1 billion as shown in Figure 3:

 

Figure 3. Oct 2024-Sep 2025 Top 25 FSCs Reutilized by Acquisition Value

FSC

Description

Requisitions

QTY

 Acquisition Value

6665

Hazard-Detecting Instruments and Apparatus

145

3,579

 $185,205,351.06

2320

Trucks and Truck Tractors, Wheeled

1,438

1,493

$139,603,332.64

2350

Combat, Assault, and Tactical Vehicles, Tracked

31

169

$133,747,573.00

5895

Miscellaneous Communication Equipment

464

3,620

$80,548,860.62

2355

Combat, Assault, and Tactical Vehicles, Wheeled

45

66

$73,061,363.20

5855

Night Vision Equipment, Emitted and Reflected Radiation

901

7,890

$64,475,840.91

6810

Chemicals

19

16,492

$63,584,535.76

1550

Unmanned Aircraft

215

365

$56,772,331.39

5865

Electronic Countermeasures, Counter-Countermeasures, etc.

28

267

$43,259,047.76

1510

Aircraft, Fixed Wing

1

1

$40,000,000.00

6115

Generators and Generator Sets, Electrical

1,070

1,933

$34,630,836.21

2330

Trailers

723

762

$30,901,653.12

3930

Warehouse Trucks and Tractors, Self-Propelled

603

889

$25,234,818.48

1905

Combat Ships and Landing Vessels

3

3

$21,101,307.00

1560

Airframe Structural Components

630

3,548

$20,413,191.08

8340

Tents and Tarpaulins

862

11,584

$19,687,955.00

5120

Hand Tools, Non-edged, Non-powered

2,916

39,353

$16,044,175.67

3805

Earth Moving and Excavating Equipment

186

253

$15,105,166.50

8145

Specialized Shipping and Storage Containers

1,180

6,711

$14,937,539.20

8465

Individual Equipment

6,598

241,966

$13,702,212.67

2815

Diesel Engines and Components

273

2,599

$13,080,992.73

7025

Information Technology Input/Output and Storage Devices

1,234

19,369

$12,949,156.33

4210

Firefighting Equipment

405

2,366

$12,884,385.35

5180

Sets, Kits, and Outfits of Hand Tools

1,078

3,333

$12,693,333.76

5985

Miscellaneous Communication Equipment

565

4,996

$11,344,750.45

 

Sum of Top 25 High Acq Value

21,613

373,607

$1,154,969,709.89

 

DLA Disposition Services facilitates Reutilization through multiple channels, primarily via local offices and the online RTD Website. This centralized platform provides 24/7 global access, allowing customers to search inventory, view detailed photos, create want lists, and submit requisitions from anywhere in the world. The system, though a bit dated, streamlines the requisition process and reduces acquisition time in many cases. More importantly, it generates substantial cost savings by enabling the reuse of excess property rather than purchasing new items, while providing access to vast inventories that help prevent critical backorders.

Room for Improvement

While these facts and figures demonstrate significant potential, the current Reutilization rates tell a different story—less than 5% of available property is actually reutilized, and 54.5% of received property is downgraded to scrap. Property condition alone does not account for the low utilization rates. To unlock the full potential of Reutilization as a cost-saving resource, we must examine the underlying barriers preventing wider adoption of DLA Disposition Services' inventory.

  • Lack of understanding of Reutilization: Many potential users across the Department of Defense and federal agencies remain unaware of DLA Disposition Services' capabilities and the Reutilization process. This knowledge gap extends from individual users to organizational leadership, resulting in missed opportunities to acquire mission-essential equipment at significant cost savings. Without proper training and outreach efforts, agencies continue to procure new items rather than exploring available Reutilization options.
  • Not mandated: Unlike new procurement processes that follow strict regulatory requirements, Reutilization screening is often viewed as optional rather than mandatory. The absence of enforceable policies requiring agencies to check available Reutilization inventory before initiating new purchases means that cost-effective alternatives are frequently overlooked. This discretionary approach undermines the potential for significant government-wide savings.
  • Hard to use interface: The current system interface presents usability challenges that deter potential users from effectively searching and identifying suitable property. Complex navigation, outdated search functionality, and non-intuitive design elements create barriers to efficient property discovery.
  • No photos/lack of data: The absence of comprehensive visual documentation and detailed property specifications hampers user confidence in available items. Without photographs showing actual condition or complete technical data, potential users cannot adequately assess whether property meets their operational requirements. This information gap forces conservative decision-making that favors new procurement over Reutilization.
  • Ineffective shipping/long wait times: Lengthy processing and shipping timelines can make Reutilization incompatible with urgent operational needs. Unfortunately, DLA Disposition Services does not control shipping priorities and there is currently a lack of visibility once orders are handed over to shipping partners. Unpredictable delivery schedules and inadequate tracking capabilities can discourage reliance on reutilized property for time-sensitive requirements.
  • Truly unusable or scrap property: A significant portion of received inventory arrives in conditions that preclude meaningful Reutilization, regardless of process improvements. Property damaged beyond economical repair, technologically obsolete equipment, or items missing critical components naturally limits Reutilization potential.
  • Inadequate Forecasting and Planning: The lack of visibility into incoming property prevents strategic planning and coordination between Reutilization and procurement processes. Without forecasting data on what property will be turned in, services cannot proactively align their acquisition strategies with available assets, leading to inefficient timing of purchases and missed cost-saving opportunities.

    To address these issues, DLA Disposition Services is transforming its approach under the 2025 Annual Operating Plan. The agency is shifting its priorities from speed and throughput to accuracy and maximizing reuse. This cultural and procedural change empowers staff to make more informed decisions about property handling, ultimately making more materials available for reuse rather than disposal.

Consequences of Bypassing Reutilization

Beyond the operational impacts, the services' reluctance to fully embrace Reutilization creates fiscal accountability issues that directly impact taxpayers and go against the basic principles of responsible government spending:

  • Wasting billions in already-purchased assets: With over $244 billion in property received in FY25, services that ignore Reutilization essentially discard already purchased assets while forcing duplicate spending for similar capabilities.
  • Missed savings: Individual examples like the $1.3 million Mobile Command Center and $2.8 million in radar transponders demonstrate how defaulting to new procurement could be wasting hundreds of millions annually in taxpayer dollars.
  • Questionable compliance with Federal Policy: Arguably, the military services are not following the Code of Federal Regulations Title 32 requirement which states, "…DoD policy, in accordance with 41 CFR chapters 101 and 102, is to reutilize DoD excess property and FEPP to the maximum extent feasible to fill existing needs before initiating new procurement or repair.”[10]
  • Inefficient resource allocation: Funds wasted on duplicate purchases could support modernization, training, or other critical capabilities, reducing military effectiveness per taxpayer dollar.
  • Inadequate Due Diligence: Purchasing without screening available DTIDs demonstrates poor spending discipline and fails basic fiscal accountability standards.

In essence, failing to utilize DLA Disposition Services Reutilization represents a systematic waste of taxpayer money, poor stewardship of public resources, and a lack of demonstrated fiscal responsibility that citizens rightfully expect from their government institutions.

Recommendations

To strengthen the DoD supply chain and fully capitalize on the benefits of Reutilization, a deliberate and coordinated approach is required, and DLA Disposition Services needs broader DoD support to make this happen. The following recommendations present a structured plan to enhance training for military personnel, align policy with operational priorities, and leverage technology to improve visibility and responsiveness, enabling DLA Disposition Services Reutilization to be embedded into core logistics processes. Several of these initiatives are already in progress, laying a strong foundation for implementation. Building on this momentum will not only reduce costs and waste but also ensure that the JLEnt maintains the agility and readiness necessary to meet evolving mission demands.

1. Reutilization Training for the Services: To fully integrate Reutilization into the “Find” step of the Kill Chain sequence, it must become a standard component of professional military education across the JLEnt. This begins with embedding Reutilization instruction into the curricula of key military officer training institutions, such as the U.S. Army Logistics University (Fort Gregg‑Adams, VA), the Navy Supply Corps School (Newport, RI), the Air Force Institute of Technology’s School of Systems and Logistics (Wright‑Patterson AFB, OH), and the Marine Corps Logistics Operations School (Camp Johnson, NC). Training should provide officers with a comprehensive understanding of Reutilization procedures, inventory management best practices, supply chain optimization strategies, and the technical steps required to obtain the correct system roles for RTD Web access and profile creation.

However, this education should not be limited to Officer commissioning and advanced courses. Reutilization awareness and skills should also be embedded into enlisted supply specialist training, warrant officer logistics programs, and procurement and contracting courses across the JLEnt. This top‑down and bottom‑up approach will ensure that every level of the DoD logistics workforce—from strategic planners to front‑line supply clerks—understands and actively leverages the opportunities DLA Disposition Services provides. The result will be a force that instinctively considers available DoD assets through DLA Disposition Services before initiating new procurement, driving cost savings, reducing waste, and improving readiness.

2. Policy Updates: In accordance with CFR Title 32 and current policy, Reutilization should be prioritized as another primary source of supply. Despite these policy directives, the current framework only encourages the use of Reutilization, rather than requiring it as a key source of supply.  To fully leverage the benefits of Reutilization, it is essential that policy be revised to mandate the military services to utilize DLA Disposition Services' Reutilization program as a primary source of supply. By making this policy change, Reutilization can be fully integrated into the supply chain, maximizing the potential for cost savings, reducing waste, and enhancing operational readiness.

3. IT Initiatives to Connect the Supply Chain:

To further enhance support to the warfighter, DLA Disposition Services is advancing a series of IT initiatives designed to seamlessly integrate its inventory into the broader supply chain. These efforts will give customers greater visibility into available property, directly link their requirements to existing assets, and accelerate fulfillment. Three priority integrations are underway that focus on what we call targeted reutilization, or reutilization based on the needs of the customer:

  • RTD Web Want Lists – In February 2025, DLA Disposition Services upgraded the Electronic Turn in Document (ETID) system to automatically flag receipts for property that matches a customer’s RTD want list. When such a match occurs, the system alerts field site personnel, prompting warehouse staff to place the item on the shelf for requisition. This ensures high demand property is made available quickly and efficiently.
  • DLA Backorders – Building on the Want List capability, the agency is developing a similar automated flag for DLA backordered items. The goal is to identify and fulfill these backorders directly from existing DLA inventory, reducing procurement delays and improving supply responsiveness.
  • Service Backorders – In parallel, work is underway to address backorders from individual service branches using the same automated approach. Data analysis and initial testing have begun to define requirements and validate processes for this capability.

These enhancements will provide real-time notifications to DLA Disposition Services warehouse receivers, enabling them to prioritize targeted reutilization of known needs from current inventory.

Beyond improving property receipt processes, DLA Disposition Services is implementing comprehensive upgrades to its customer-facing systems. The agency has launched several concurrent projects to modernize RTD Web's functionality, improve system performance, and enhance user experience. Recognizing the critical importance of visual documentation, DLA Disposition Services is also exploring innovative IT solutions to simplify and automate the process of incorporating property photographs into the RTD Web database for customer viewing and exploring options for order shipment tracking. While the potential benefits are significant, completing these initiatives will require additional resources and sustained information technology support. Once fully implemented, these tools will make DLA Disposition Services’ inventory more transparent, accessible, and responsive—empowering customers to source a wider range of property quickly, reducing costs, and strengthening operational readiness across the force.

Additionally, as artificial intelligence tools advance, DLA Disposition Services is pioneering methods to seamlessly integrate ordering, forecasting, disposal, reutilization, and shipping with evolving service requirements. Through targeted research and development, we’re mapping current processes, piloting agile proofs of concept, and gathering insights from a broad spectrum of stakeholders to unlock new possibilities. The ideal future state would include fully integrated systems that communicate across the DoD and make ordering through DLA Disposition Services Reutilization as seamless as any other ordering process.

Reutilization Integrated as Source of Supply: By aligning enhanced training initiatives, updated policy frameworks, advanced IT integrations, and sustained AI-driven research and development, DLA Disposition Services can be fully integrated into the “Find” step of a unified Supply Kill Chain. The services will be aware of and trained to requisition property through Reutilization. When logisticians and warfighters require end items, spare parts, or critical equipment, they can prioritize DLA Disposition Services as a primary source—alongside the DLA Catalog, FEDMALL, GSA, and commercial vendors. This cohesive integration expedites access to mission-ready assets at minimal or no additional cost, significantly reduces procurement lead times and material waste, and reinforces the DoDs agility and readiness to meet evolving operational demands. 

Conclusion

The U.S. military supply chain is facing unprecedented risks and challenges, and it is imperative that the military services adopt a proactive approach to mitigating these risks.  One critical component of this approach is the integration of Reutilization into the supply chain, leveraging the capabilities of DLA Disposition Services to provide a rapid and cost-effective means of acquiring necessary materials and equipment.  By prioritizing Reutilization as a primary source of supply, we can reduce our reliance on external suppliers, minimize the risk of supply chain disruptions, and enhance operational readiness.

The data presented in this paper demonstrates the significant contributions that DLA Disposition Services can make to supporting military readiness, reducing waste, and promoting fiscal responsibility.  With a vast and diverse inventory of excess property, DLA Disposition Services is well-positioned to provide military units with the critical items they need to execute their missions.  Integrating Reutilization into the "Find" step of the Kill Chain sequence, incorporating Reutilization training into the curriculum of various training schools, revising current policy to mandate the use of DLA Disposition Services' Reutilization program, and integrating IT initiatives to connect it all, can unlock the full potential of Reutilization and create a more resilient, efficient, and effective supply chain. By increasing targeted reutilization efforts, DLA Disposition Services will be able to better support warfighters when they have an identified need via want lists, DLA backorders, or service backorders, and standard reutilization, transfer, and donation processes.

Ultimately, the successful integration of Reutilization into the DoD supply chain will require a cultural shift, as well as changes to policy, procedures, and training.  However, the benefits of this effort will be well worth it, as the JLEnt is able to reduce costs, enhance operational readiness, and support the effective execution of military missions.  As Lieutenant General Simerly stated during a Town Hall event at the DLA Disposition Services Headquarters in September 2025, connecting the supply chain in our rugged digital terrain is “a great opportunity to enhance readiness.” Embracing Reutilization as a key component of its supply chain strategy will ensure the DoD that its military services have the resources they need to succeed in an increasingly complex and challenging operational environment.

Chen, Ling S., and Miles E. Evers. “‘Wars without Gun Smoke’: Global Supply Chains, Power Transitions, and Economic Statecraft.” MIT Press Direct, October 1, 2023. https://direct.mit.edu/isec/article/48/2/164/118107/Wars-without-Gun-Smoke-Global-Supply-Chains-Power.

“Condition Codes.” Defense Logistics Agency. Accessed September 23, 2025. https://www.dla.mil/Disposition-Services/DDSR/Quick-Links/Condition-Codes/.

“DoDM 4160.21, Vol 3, Defense Materiel Disposition: Reutilization, Transfer, and Sale of Property.” DoD Issuances, November 18, 2022. https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodm/416021_vol3.PDF?ver=OS5mgrLSsArG_LtaW2INpg%3d%3d.

Hoyle, Tim, and Dawn Bonsell. “Agency Rallies to Support Navy’s Critical Part Need.” Defense Logistics Agency, April 1, 2019. https://www.dla.mil/About-DLA/News/News-Article-View/Article/1802034/agency-rallies-to-support-navys-critical-part-need/.

Landenberger, Jeff. “Navy Command Saves an Additional 1.3 Million with DLA Disposition Services.” Defense Logistics Agency, June 18, 2024. https://www.dla.mil/About-DLA/News/News-Article-View/Article/3806396/navy-command-saves-an-additional-13-million-with-dla-disposition-services/.

Office, U.S. Government Accountability. “Critical Materials Are in High Demand.” U.S. GAO, March 20, 2025. https://www.gao.gov/blog/critical-materials-are-high-demand.-what-dod-doing-secure-supply-chain-and-stockpile-these-resources.

Sullivan, Brandon, and Jeremy Wilson. “Center for Anti-Counterfeiting and Product Protection.” Center for Anti-Counterfeiting and Product Protection, 2016. https://a-capp.msu.edu/article/counterfeit-parts-in-the-u-s-department-of-defense-supply-chain/.

“Targeting.” U.S. Air Force Doctrine, November 12, 2021. https://www.doctrine.af.mil/Portals/61/documents/AFDP_3-60/3-60-AFDP-TARGETING.pdf.

“Title 32 PART 273—DEFENSE MATERIEL DISPOSITION.” Discover U.S. Government Information, July 1, 2024. https://www.govinfo.gov/content/pkg/CFR-2024-title32-vol2/pdf/CFR-2024-title32-vol2.pdf.

Wolff, Jason, Marcos A. Melendez III Brad McNally, Michael E. O’Hanlon, Belinda Archibong Hady Amr, Thomas Wright, and Jim Mitre Colin Kahl. “The Department of Defense’s Digital Logistics Are under Attack.” Brookings, July 13, 2023. https://www.brookings.edu/articles/the-department-of-defenses-digital-logistics-are-under-attack/. 

Appendix 1: Relevant Supply Condition Code Definitions 

Code

Description

Condition

A

SERVICEABLE (ISSUABLE WITHOUT QUALIFICATION)

New, used, repaired, or reconditioned materiel which is serviceable and issuable to all customers without limitation or restriction.  Includes materiel with more than 6 months shelf-life remaining.

B

SERVICEABLE (ISSUABLE WITH QUALIFICATION)

New, used, repaired, or reconditioned materiel which is serviceable and issuable for its intended purpose but which is restricted from issue to specific units, activities, or geographical areas by reason of its limited usefulness or short service life expectancy.  Includes materiel with 3 through 6 months shelf-life remaining.

C

SERVICEABLE (PRIORITY ISSUE)

Items which are serviceable and issuable to selected customers, but which must be issued before SCCs A and B materiel to avoid loss as a usable asset.  Includes materiel with less than 3 months shelf-life remaining.

D

SERVICEABLE (TEST/ MODIFICATION)

Serviceable materiel which requires test, alteration, modification, technical data marking, conversion, or disassembly.  This does not include items which must be inspected or tested immediately prior to issue.

E

UNSERVICEABLE (LIMITED RESTORATION)

Materiel which involves only limited expense or effort to restore to serviceable condition and which is accomplished in the storage activity where the stock is located.  May be issued to support ammunition requisitions coded to indicate acceptability of usable SCC E stock.

F

UNSERVICEABLE (REPARABLE)

Economically reparable materiel which requires repair, overhaul, or reconditioning; includes reparable items which are radioactively contaminated.

G

UNSERVICEABLE (INCOMPLETE)

Materiel requiring additional parts or components to complete the end item prior to issue.

H

UNSERVICEABLE (CONDEMNED)

Materiel which has been determined to be unserviceable and does not meet repair criteria; includes condemned items which are radioactively contaminated; Type I shelf-life materiel that has passed the expiration date; and Type II shelf-life materiel that has passed expiration date and cannot be extended.  (NOTE: Classify obsolete and excess materiel to its proper condition before consigning to the DLA Disposition Services Field Office.  Do not classify materiel in Supply Condition Code H unless it is truly unserviceable and does not meet repair criteria.)

Q

SUSPENDED (PRODUCT QUALITY DEFICIENCY)

Potential and confirmed product quality deficiency related materiel which is prohibited for use within DoD and prohibited for Reutilization screening.  Includes product quality deficiency exhibits returned by customers/users as directed by the integrated materiel manager (IMM) due to technical deficiencies reported by Product Quality Deficiency Reports.  Exhibits require technical or engineering analysis to determine cause of failure to perform in accordance with specifications.  Includes product quality deficient materiel identified by SF 368 Product Quality Deficiency Report; DD Form 1225, Storage Quality Control Report; SF 364, Supply Discrepancy Report (Security Assistance only); or authorized electronic equivalent.

S

UNSERVICEABLE (SCRAP)

Materiel that has no value except for its basic materiel content.  No stock will be recorded as on hand in SCC S.  This code is used only on transactions involving shipments to DLA Disposition Services Field Offices.  Materiel will not be transferred to SCC S prior to turn-in to DLA Disposition Services Field Offices if materiel is recorded in SCCs A through H at the time materiel is determined excess.  Materiel identified by NSN will not be identified by this SCC.

  • Navy command saves an additional 1.3 million with DLA Disposition Services:  Link
  • (A new) Home on the range: NTTR: Link
  • Excess equipment to help build special operations capability: Link
  • (A new) Home on the range: NTC Fort Irwin:  Link
  • (A new) Home on the range: JRTC: Link
  • Excess equipment bolsters operational readiness: Link
  • Japan firetruck reuse helps NH Air Guard:  Link
  • DLA Disposition Services supports ROTC winter training in New Hampshire:  Link
  • Europe and Africa team notches buzzer-beating assist for Army Special Forces in Eastern Europe:  Link
  • DLA helps grounded C-17 fly:  Link
  • Okinawa team helps restore joint range:  Link
  • DLA Reutilization program supports COVID-19 relief with 2.5 million medical items: Link
  • Agency rallies to support Navy’s critical part need:  Link
  • Coast Guard finds a bargain at Okinawa site:  Link
  • Air national guardsman uses Defense Logistics Agency Reutilization program to save millions of dollars:  Link

[1] “Targeting,” U.S. Air Force Doctrine, November 12, 2021, https://www.doctrine.af.mil/Portals/61/documents/AFDP_3-60/3-60-AFDP-TARGETING.pdf.

[2] “DoDM 4160.21, Vol 3, Defense Materiel Disposition: Reutilization, Transfer, and Sale of Property,” DoD Issuances, November 18, 2022, https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodm/416021_vol3.PDF?ver=OS5mgrLSsArG_LtaW2INpg%3d%3d.

[3] U.S. Government Accountability Office, “Critical Materials Are in High Demand,” U.S. GAO, March 20, 2025, https://www.gao.gov/blog/critical-materials-are-high-demand.-what-dod-doing-secure-supply-chain-and-stockpile-these-resources.

[4] Brandon Sullivan and Jeremy Wilson, “Center for Anti-Counterfeiting and Product Protection,” Center for Anti-Counterfeiting and Product Protection, 2016, https://a-capp.msu.edu/article/counterfeit-parts-in-the-u-s-department-of-defense-supply-chain/.

[5] Jason Wolff et al., “The Department of Defense’s Digital Logistics Are under Attack.,” Brookings, July 13, 2023, https://www.brookings.edu/articles/the-department-of-defenses-digital-logistics-are-under-attack/.

[6] Ling S. Chen and Miles E. Evers, “‘Wars without Gun Smoke’: Global Supply Chains, Power Transitions, and Economic Statecraft,” MIT Press Direct, October 1, 2023, https://direct.mit.edu/isec/article/48/2/164/118107/Wars-without-Gun-Smoke-Global-Supply-Chains-Power.

[7] “Condition Codes,” Defense Logistics Agency, accessed September 23, 2025, https://www.dla.mil/Disposition-Services/DDSR/Quick-Links/Condition-Codes/.

[8] Jeff Landenberger, “Navy Command Saves an Additional 1.3 Million with DLA Disposition Services,” Defense Logistics Agency, June 18, 2024, https://www.dla.mil/About-DLA/News/News-Article-View/Article/3806396/navy-command-saves-an-additional-13-million-with-dla-disposition-services/.

[9] Tim Hoyle and Dawn Bonsell, “Agency Rallies to Support Navy’s Critical Part Need,” Defense Logistics Agency, April 1, 2019, https://www.dla.mil/About-DLA/News/News-Article-View/Article/1802034/agency-rallies-to-support-navys-critical-part-need/. 

[10] “Title 32 PART 273—DEFENSE MATERIEL DISPOSITION,” Discover U.S. Government Information, July 1, 2024, https://www.govinfo.gov/content/pkg/CFR-2024-title32-vol2/pdf/CFR-2024-title32-vol2.pdf.