1 DOD surplus quotes a change in policy at the Defense Logistics Agency as the reason for destroying the brass, however, I noticed there is no notice of such a change on the DLA's website ( http://www.dla.mil/DLAPublic/DLA_Media_Center/ ).

Maybe somebody missed a memo or something...

2 As metal prices are down anyway due to the depressed economy, Thanks Pretender in Chief Urkel!, we can expect the Government to keep screwing up and I am hoping that in 2010 We can put Adults back in charge and make Urkel a lame duck and get America back on track.

3 Betcha that "scrap" ends up being reloaded in China. Watch Fiendstein's husband for that move.

duh1 is a Manchurian Candidate in action.

4 From the Shootist post

He stated most of this will now go to foundries where it will be melted down, cast in shippable forms, and likely be sold to China, one of the largest purchasers of U.S. metals on the open market.

Looks like you are correct, torabora.

Was this done by Executive direction? I thought that Obama wasn't going to do any of those, since he complained about Bush doing them.

5 Does this NEVER end? He is dismantling our country bit by bit, and using the AIG thing as a smoke screen. I don't have a problem with people getting money that was in their contract. I DO have a problem with the bailout out. But the BIGGER problem is the policy being pushed forward by this administration....like taxing health insurance benefits - which he mocked McCain for? And even worse (and why is this not all over the news? Because everyone is fixated on AIG bonuses) the disgraceful, shameful proposal to cause veterans to be responsible for their OWN health care for injuries/conditions caused by their service? Excuse me? Tea parties just aren't enough. He is trying to dismantle our military, I am telling you. He will make it so thankless, so undesireable to be in the military the numbers will decline, then they wil enact the draft - thus no more all volunteer army,

ok. rant over for now....must have coffee...

6 Expect four years of this. Covert, corrupt and cowardly moves to accomplish his ends, and an endless series of bunker campaigns to destroy those who stand in his way. Meanwhile, we'll get treated to the public Obama: the smiling, majestic mien, the mellifluously incoherent speeches with their tossed rhetorical bones to "bipartisanship," and of course the media -- justifying, apologizing, explaining away and covering up the incompetence and turpitude. Boring, if it weren't so dangerous this time around.

7 If you go to Government Liquidations LLC's website, search for "casings" you will see the new regulations in place plainly. "ALL SCRAP IN THIS SALE REQUIRES MUTILATION BY THE BUYER PRIOR TO REMOVAL IF ALLOWED BY THE INSTALLATION OR MUTILATION MUST BE WITNESSED AND CERTIFIED BY DOD SURPLUS PERSONNEL AT ANOTHER FACILITY. THE TITLE TO THE MATERIAL DOES NOT PASS TO THE BUYER UNTIL THE SCRAP HAS BEEN MUTILATED. BUYER AGREES TO ALLOW USG PERSONNEL TO WITNESS DESTRUCTION."
see - (http://cgi.govliquidation.com/auction/view?id=2272021&convertTo=USD)

8 Good time to start stocking up on ammo, price will do nothing but go up. Might be a good time to invest in reloading gear too !

9 Nothing to do with any new 'directive' or 'regulation', if there were I am sure Government Liquidations LLC would have provided a direct cite.

Government Liquidations LLC is owned by Liquidity Services, Inc.

FYI,

Liquidity Services, Inc. Awarded New Surplus Contract with the U.S. Department of Defense

04 AUG 2008

WASHINGTON -- Liquidity Services, Inc. (LSI) today announced the award of its new Surplus Contract with the Defense Reutilization and Marketing Service (DRMS), a field activity of the U.S. Department of Defense (DoD). Following a competitive offering process, on July 31, 2008 DRMS awarded LSI a contract to manage the receipt, storage, marketing and disposition of virtually all useable surplus personal property generated by DoD installations throughout the United States. The contract has a base term of three years with two one-year renewal options and LSI expects to commence operations in approximately 90 days. The new surplus contract ensures LSI will continue to serve as the primary channel for the sale of DoD useable surplus personal property in over 500 categories throughout the United States.

Under the terms of the new contract, LSI will pay DoD approximately 3.26% of the DoD's original acquisition value (OAV) for all useable surplus items referred and LSI will retain 100% of the profit while bearing its own costs for the merchandising and re-sale of these items. Payment for the property will be made in two steps in which approximately 2.26% of the OAV will be paid upfront and 1.00% will be paid 120 days after LSI's receipt of the property. DoD useable surplus property will continue to be offered for sale through LSI's online auction marketplace, www.govliquidation.com.

"Building on our experience as the exclusive contractor for the sale of DoD useable surplus property since 2001, we are excited to continue this relationship and further leverage our online sales and property domain expertise to significantly improve how DoD useable surplus property is screened and sold," said Bill Angrick, Chairman and CEO of LSI. "As an innovative solution provider, we provide the DoD with the most effective solution to dispose of DoD surplus property while protecting national security, reducing costs and providing a valuable revenue stream to the U.S. Treasury."

About Liquidity Services, Inc. (LQDT)

Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable corporations and government agencies to market and sell surplus assets and wholesale goods quickly and conveniently using online auction marketplaces and value-added services. The company is based in Washington, D.C. and has 685 employees. Additional information can be found at: www.liquidityservicesinc.com.

Checked Government Liquidations LLC webpage, spent brass has OAV of $ZERO.

Incidentally, Chairman and CEO of LSI, William Angrick, donated to Democrats in 2008.



Nonetheless, in the interest of privatization, LSI was granted a monopoly on DRMO (yeah, old school) for 3.26% of OAV. Spent brass, OAV == 0.

It is LSI's scrap, it was demil'd before they got their claws onto it.

They want, "BUYER AGREES TO ALLOW USG PERSONNEL TO WITNESS DESTRUCTION" - no problem - it is NOT going to happen. This Contractor cannot obligate the Government EVER, never mind to inspect execution to terms above/beyond those that the Gov obligated them to.


I'd call IG for fraud and point out that the OAV is much much higher.

10 Bob, one question, wouldn't this only have an effect on the calibers that the DoD uses in bulk and not have any real effect on the many other calibers consumed by us? I mean the DoD uses what 3-4 calibers and of them probably two are widely used by civilians granted law enforcement will feel it more than the rest of us. I know a lot of hunters and other than the .308 none use any military calibers. I don't know what the standard sidearm is now but that could have an effect on handgun ammo prices especially if its the 9 mil. Oh well I don't use any of the calibers the military does so I don't know how it will effect what I pay for ammo.

11 I am not sure I understand this. The government has said the military will no longer sell used shell casings to companies that make ammo. Instead this brass has to be demilitarized which i understand to be either crushed or melted down casings. Now, I have read that the price of bulk brass is significantly cheaper than the price of used brass casings. Would it not be more cost effective then to buy the demilitarized casings and then recast them. The ammo makes must have had a way of casting shells before. Surly not all the ammo that they sold came from military sources. Also, we are only talking about a select number of calibers, right? There is a whole host of other calibers out there that companies must have been casting themselves. Last time i heard 30-30 or .22 were not typical military rounds.

So, can anybody point out a flaw in my logic? It seems this new policy will allow ammo companies to obtain much cheaper brass which they then can cast their own casings? Am i missing anything here?

12 goat,

top mil calibers are 5.56x45, 7.62x51, and 9x19, which are also among the most popular civilian calibers in the US. When police agencies feel the pinch, their large bulk-order power means they get priority, and everybody's prices go up.

iowa80,

By being scrapped the casings lose 80% of their value. That means the DoD gets 80% less than it used to for the same material, AND that material is not useful for the reloaders, who do not have foundries to melt the scrap, recast and reform it into cartridge casings.

The reloading companies are used to having a used product in good condition they can bring back to market quickly .

Stating that scrapping the brass is good from the reloaders is like saying putting a car in a compacter is good for used car salesmen.

13 Good news - the policy has been reversed. Brass can once again be sold to reloaders in the U.S. without being shredded. More here:

http://www.thefirearmblog.com/blog/2009/03/18/dod-brass-ban-lifted/

14 By being scrapped the casings lose 80% of their value. That means the DoD gets 80% less than it used to for the same material, AND that material is not useful for the reloaders, who do not have foundries to melt the scrap, recast and reform it into cartridge casings.

MAYBE, depends on what you think "DOD" is.

As I stated above, The Department of Defense (DoD) gets Zero because they have apparently stated the original acquisition value (OEV) as Zero. The Contractor, DOD, has a monopoly contract for resale of all DRMO stuff, and pays the DoD 3.26% of OEV. 3.26% of Zero is Zero. DOD then resells and gets 100%.

Has anybody noted that DOD is not DoD yet?

15 O'Dumbo has started his firearm confication on military installations. Some bases are already requiring every firearm in 'base housing' to be turned in to a central armory.

If you see someone joining the military or reenlisting today, stay clear of them, they are insane.

16 Scrapiron...

This is much a-do about nothing. I recall ten+ years ago personal weapons had to be held in the Unit armory - No.Way.

Rent a U-Store-It off base for fifty a month than let a few drunken O's draw your shiite for fun on the their turn at range qualification....

THAT being said. Since 9-11 I have never took advantage of the MWR ranges for personal practice, 'cause I live off-base and do not want to explain why I got a bunch of shiite ion the trunk, just to kill time during lunch break.

17 As it turns out, this was a misunderstanding that has been corrected. The US military's "fired brass destruction" policy change turned out to be very short-lived. It has just been reversed as of Tuesday. To begin with, the policy change was intended only for military brass that is OCONUS, not in CONUS. Read about it here: http://www.drms.dla.mil/publications/4160.14/section2/s2c1.pdf

18 Any plans to update this post to reflect the change?

19 It matters not whether this attack on Gun Owners has been stopped for now. It matters more how to we put a stop to the antics of the Kenyan leading our country and IMPEACH him. If we focused on what was really happening and not who @ AIG got money, which is where he wants the focus thus off his under the table gutless moves. Obama will dismantled our COUNTRY if we do not put a stop to his plan. Why have we continued to see the PROOF of birth shot down by Judges in our country, well maybe we should ask the MOB from Chicago. They put in him in power and now defend him day after day. He is a loose cannon just waiting to blow up the America we have loved and lived in for years.

Enough for now !!!!