Csm Davis
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Yes it still works that way.There is actually another reason stuff gets diverted to scrap, and it is borderline fraud.
I can't say for sure if it is still going on, but for a long time as a way to encourage "recycling" to make the government more eco friendly base commanders were told that any funds that came back from recycling would be kept on post and could eb sued at the commanders discretion for Morale, Welfare and Recreation projects. Parks, ball fields, clubs, anything like that.
As a result posts quickly began"recycling" anything with any metal content. We have all seen the piles of aluminum tent frames sold as scrap with mutilation required. No legitimate reason for that, but diverting to "recycling" means the funds go other places. So even though the sale price was lower the funds stayed with the post instead of going to the US Treasury.
The Navy is the worst at times. I have seen term contracts bid for "scrap" that included clothing, field gear, etc all perfectly serviceable. But diverted from the normal auction process to "recycling" to keep the money in that base commanders control even though it ended up sold for far less.
It is a pretty blatant abuse of the system. It may still be happening today, I suspect it is, only because nobody with enough pull has stepped in.
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