"The Transportation Security Administration (TSA) operates three warehouses in Texas, collectively known as the TSA Logistics Center. The warehouses store various types of Government equipment used at airports to screen passengers and baggage. Equipment used at airports, but not specifically used for screening operations, is also stored in the warehouses. As of May 31, 2012, TSA had more than 17,000 items in its warehouse inventory, with an estimated cost of $185.7 million. We performed this audit to determine whether TSA effectively managed the Logistics Center. Although TSA has improved accountability of screening equipment at the Logistics Center, its plans and procedures for inventory management need additional improvements. Specifically, TSA stored unusable or obsolete equipment, maintained inappropriate safety stock levels, and did not develop an inventory management process that systematically deploys equipment. Additionally, TSA did not use all storage space within the Logistics Center. As a result, TSA may be losing utility of equipment as it ages and may be able to put approximately $800,000 per year--used to lease two warehouses--to better use."