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Here is why Homeland Security is buying so much ammo (My Working Theory)
Today | Me

Posted on 04/26/2013 10:39:35 AM PDT by dila813

Quick run down on budget management in the federal government:
1. Prior to the start of the year, you made a budget request 10% higher than last year's budget
2. At the beginning of the fiscal year you are given a budget target to spend for the year
3. During the year, if you are running short due to demand you put in requests for supplemental funds
4. As you approach the end of the year, if it appears you are going to still have money left. You have to spend it, you look for items that aren't perishable and have a long time for storage (great place to look are items you placed a large number of orders during the year, as in number of orders not number of items). This routinely happens in Republican Administrations, in Democrat Administrations it can be 2-3x what you would normally see. I believe this is because the Dems are poor planners and only have eyes for key projects.

Ok, Baseline budgeting
1. Prior year exceptional spending becomes part of the base line budget going forward (like billions of dollars in upgraded luggage and people scanners in airports)
2. .... etc... rinse and repeat leading to inflated budgets

Ok, Supply Chains:
... commodities like ammo are produced linearly throughout the year because the inventory is cheaper than having excess capacity to react to changes in demand

further, when orders come in, no one is going to turn down the order no matter how big, but since it was such a huge order it took away all this critical buffer inventory leading to shortages when the public demand picked up at the same time eliminating all their inventory in their distribution channels.


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: ammo; ammoshortage; banglist; baselinebudgeting; guncontrol; secondamendment
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To: dila813

A question, dila...

If the government issues the purchase order for “up to” a gazillion rounds, they have spent their budget, as funds are allocated even if the actual purchase is not made.

The following years’ budgets gets these funds rolled over, for the next hypothetical PO awarded for ever-increasing purchases that are never consummated. Are they just parking money this way?

BTW, thank you for taking on the free energy spammers that pop up here occasionally.


21 posted on 04/26/2013 10:58:18 AM PDT by Stalwart
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To: dila813
Ok, Supply Chains: ... commodities like ammo are produced linearly throughout the year because the inventory is cheaper than having excess capacity to react to changes in demand
How about toilet paper? Now there is a good commodity!
22 posted on 04/26/2013 10:58:23 AM PDT by drinktheobamakoolaid (If we falter and lose our freedoms, it will be because we destroyed ourselves. Abraham Lincoln)
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To: dila813

What budget? Did I miss something?


23 posted on 04/26/2013 11:00:53 AM PDT by Resolute Conservative
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To: Georgia Girl 2

come on, truly.... how much do you think they need to buy in order to replace the spending they did previously at the peak of the spending for integrating the TSA with billions spent for scanners.

ammo has a long life, its small, can the cost is high for the space it takes up.

I have walked into warehouses that were packed with excavation equipment in wooden crates as far as the eye could see from the 80s that sat in mint condition never been used.


24 posted on 04/26/2013 11:03:57 AM PDT by dila813
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To: Resolute Conservative

budgets within agencies, not the congressional budget.

This is the operating budgets.


25 posted on 04/26/2013 11:04:41 AM PDT by dila813
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To: drinktheobamakoolaid

it is, but its cost is low for the space it takes up

not a good candidate for this kind of spending


26 posted on 04/26/2013 11:05:55 AM PDT by dila813
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To: dila813

“since it was such a huge order it took away all this critical buffer inventory leading to shortages when the public demand picked up at the same time eliminating all their inventory in their distribution channels.”

No, I’d say this part of your theory is incorrect, because the DHS order is not extraordinary. It’s at the same level as their order from previous years going back at least a decade. So, the sole reason for the shortage is the public panic buying, since the DHS purchases would have had no effect on any buffer inventory.


27 posted on 04/26/2013 11:08:41 AM PDT by Boogieman
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To: dila813

That hardly explains so much $$$$ spent on ammo when they could just as easily bought office furniture with it. Ammo isn’t going to make their lives more cushy but a nicely decorated office with a big leather desk chair would. That also doesn’t explain why so many gov depts who have no need for such large amounts of ammo were ordering it too.


28 posted on 04/26/2013 11:09:00 AM PDT by bgill
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To: NoLibZone

Why weren’t you disappointed in them when they sold the same amounts to DHS under the Bush administration?


29 posted on 04/26/2013 11:09:39 AM PDT by Boogieman
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To: Stalwart

we weren’t allowed to roll over to the next year,

you had to get the item physically in hand, under your physical control. This could simply mean driving over there and putting it in the trunk of your government vehicle.

If you receive it next year it was part of that year’s budget.

We wouldn’t place an order if it wasn’t going to be in time.

In fact, the government developed a specific type of order for these iffy cases. The “Fill or Kill”, the supplier fills it per the requirements including the time of delivery or the order is null and void, self-canceling.


30 posted on 04/26/2013 11:10:17 AM PDT by dila813
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To: dila813

I think one thing to remember is that everyone who works at DHS does not carry a weapon. A good deal of them are just administrative types.

They are not the military and they have no need to be armed up to the teeth to the point that they can carry on the Iraq war for 20 years. This agency is morphing into Ostumbles civilian national defense force and will deployed on every highway and byway to enforce the new transformed country on all of us. It needs to be stopped.


31 posted on 04/26/2013 11:10:31 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: dila813
They are still going to need ammo for themselves.

Gee, Boss, I have no idea how that box of ammo got into my pocket.

32 posted on 04/26/2013 11:10:45 AM PDT by bgill
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To: dila813

Still, if no overall budget how can agencies set budgets when they have no clue how much they have? Simply basing off last year is not good enough.

I smell graft and misappropriation everywhere.


33 posted on 04/26/2013 11:10:50 AM PDT by Resolute Conservative
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To: bgill

Different category of budget item, that money is a lot more limited and the government says you have to use GSA contracts for a lot of that stuff.

In some cases, the building/office with all the furniture is handled by GSA and we don’t have anything to do with it.


34 posted on 04/26/2013 11:13:23 AM PDT by dila813
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To: Boogieman

No one was screaming conspiracy theories at that time.


35 posted on 04/26/2013 11:14:04 AM PDT by dila813
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To: Georgia Girl 2

The “armored truck” story is a myth. They were purchased by the Marine Corps.


36 posted on 04/26/2013 11:14:34 AM PDT by Boogieman
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To: Slump Tester

The fedzilla knows a date certain is approaching beyond which they will no longer be able to resupply their domestic army. The planned collapse must be close given the amount of stocking up these democrips are doing. What we need is to find out where they ammo is being shipped, because if it is near or in one or more of the several hideaways that have been built to house and protect the oligarchs during the destruction of America, then we will know for sure what the agenda is.


37 posted on 04/26/2013 11:14:38 AM PDT by MHGinTN (Being deceived can be cured.)
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To: Resolute Conservative

There are always operating budgets, these budgets are based on what was appropriated at the agency level by congress and then filtered down the ladder to the low level spenders like me.


38 posted on 04/26/2013 11:16:24 AM PDT by dila813
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To: dila813

Exactly.


39 posted on 04/26/2013 11:16:26 AM PDT by Boogieman
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To: MHGinTN

I bet there is a place just chock full of this ammo where you could see it.

I bet they have ammo going back to the 1970s.

I am sure if congress wanted to, they could bring the press in to see the ammo stash.


40 posted on 04/26/2013 11:18:24 AM PDT by dila813
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