We reviewed the military services justification for their fiscal year 1987 appropriation requests for ammunition items and the Armys request for the ammunition production base. In March 1986 we provided your staffs some observations and questions on various ammunition line items and production base support projects for which fiscal year 1987 funds were requested. In addition, in May 1986 we briefed your staffs on the results of our review. The May 1986 briefings met your staffs immediate needs for information for use during initial deliberations on the Defense Appropriation Bill, This report documents the information provided at the May 1986 briefing and provides final information on the results of our review. The Presidents fiscal year 1987 defense budget request totals about$4.9 billion for ammunition items and $353.9 million for enhancing ammunition production facilities. In our opinion, about $1.6 billion of the ammunition requests and $177.6 million of the Armys production base request are inadequately justified and should not be funded. This letter provides an overview of our findings and appendixes II through XI provide supporting details.