DOD, like many government agencies (including FEMA), relies on a "prime vendor" system (valued at $9 billion) to minimize on-site inventory. That's smart business. The problem comes when prime vendor prices escape scrutiny. That's wasted taxpayer money.
For example: the Defense Supply Center Philadelphia could not explain "why the price of an aircraft refrigerator increased from $13,825 in March 2002 to $32,642 in September 2004." Not only that, but on 24 September 2005, DOD paid two different prices for the same refrigerator -- $32,642 and $29,975! This lack of pricing review has been noted on GAO reviews since 2002. And yet it still happens.
The GAO finds problems; the agency says here's what we'll do to fix it; and then the next review shows ... no appreciable change. Why? Maybe it's because political apppointees run agencies frm the top -- they're here today, gone tomorrow. No worries about lost bonuses or promotions if the system remains broken.
See also: How Much Is A Billion, GAO: Defense Spends Billions on PR, Corporate Welfare, More Katrina: GAO Reports Fraud; Trailers Languish in Arkansas, GAO: IRS Procedures Threaten Taxpayer Confidentiality