Virtual warehouse for foreign military sales sets record

  • Published
  • By Daryl Mayer
  • Air Force Security Assistance Center Public Affairs
With one month still remaining in fiscal 2007, the Worldwide Warehouse Redistribution Services program is approaching the $16 million mark, shattering the previous record for annual sales.

Managed by the Air Force Security Assistance Center here, Worldwide Warehouse Redistribution Services, or WWRS, is a virtual warehouse for foreign military sales, similar to internet auction sites that are popular in the commercial world.

The program allows a country to list surplus items and offer them for sale to other foreign military sales customers, according to Pete Heron, WWRS program manager.

In addition to cost savings, which average around 30 percent below the Department of Defense standard, customers often can get items much quicker than through the normal supply or production pipeline. For some older items, it may be the only alternative to hiring a company to specially fabricate an item no longer in production, a time-consuming and very costly process, Mr. Heron said.

"This program takes a brilliant concept from the commercial world and modifies it to the mutual benefit of the Air Force and international partners," said Brig. Gen. Joseph Reheiser, AFSAC commander. "The remarkable growth of the program is proof that it works."

When the program began in 1998, WWRS shipped 31 items valued at just over $180,000. So far this year, nearly 3,400 shipments valued at almost $16 million have been processed, far surpassing the previous record of $11 million set in 2006.

"This year we reduced our service charge, so sellers are keeping more of their sales proceeds and often pass those savings on to buyers," said Mr. Heron, in explaining one possible reason for the increased activity.

The number of buyer and seller nations has increased steadily each year. Current numbers are 50 buyers and 20 sellers. The U.S. Army and Navy have purchased items through the program and the Air Force's logistics centers now run a check through WWRS on critical item searches.

The program has the necessary controls to provide security, Mr. Heron said. Foreign customers must establish a foreign military sales case prior to buying an item to ensure they are fully authorized. Sellers are also checked to ensure the item they are selling was originally purchased through the foreign military sales system. The program also is prohibited from listing significant military equipment as defined in the International Trafficking in Arms regulations.

After a sale, items are transferred to an in-transit inspection point operated for the Air Force by Baker and Associates in Centerville, Ohio. The contractors strip all markings from the items, conduct a visual inspection and document the item's condition before sending it to the buyer. This is done, said Mr. Heron, to ensure buyers and sellers remain anonymous as well as verify item identity and maintain quality control. 

(Courtesy of Air Force Materiel Command News Service)

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