Defense Supplies Security and Control Reform Act of 1987

Defense Supplies Security and Control Reform Act of 1987 - Title I: Supply Inventory Management Studies, Demonstration Project, and Modernization Plan - Directs the Secretary of Defense: (1) no later than one year after the enactment of this Act, to carry out a study to determine the effectiveness of Department of Defense (DOD) procedures for ensuring the security and control of supplies at DOD depots; and (2) no later than 18 months after the enactment of this Act, to report to the Senate and House Armed Services Committees (the defense committees) on the results of the study, and to provide the Comptroller General a copy of such report. Directs the Comptroller General to review such report, and to submit his or her findings and recommendations concerning such report to the defense committees. Authorizes appropriations.

Directs the Secretary to: (1) conduct a cost-benefit analysis of the practice of selling surplus DOD munitions to the public; (2) develop improved methods for the identification and accounting of individual DOD munitions items; and (3) prepare a plan for the modernization of the supply facilities and distribution procedures of the military departments and defense agencies of DOD. Requires reports by the Secretary to the defense committees.

Title II: Supply Security and Control Improvements - Directs the Secretary, not later than February 1 annually, to report to the defense committees on the security and control of supplies. Outlines information to be included in each such report, including inventory program plans, deficiencies discovered, and an evaluation of the effectiveness of the current system of supply inventory security and control.

Directs the Secretary to require an investigation of each discrepancy in an accounting for supplies of DOD involving an amount to be prescribed by the Secretary. Directs the Secretary to require, to the extent feasible, that defense supply ordering and receiving functions be performed by different offices and individuals. Requires the Secretary to ensure that an individual's performance in accounting for defense supplies is taken into account in evaluating job performance, rating efficiency, or determining fitness for retention, promotion, or assignment to a position of command. Requires the Secretary to ensure that DOD employees and armed forces members performing defense supply functions are skilled in such positions, and are not performing such functions merely for disciplinary reasons.

Title III: Law Enforcement Enhancement Provisions - Urges the Secretary to continue to utilize undercover investigative techniques to detect and investigate thefts of Government property, including munitions from the DOD supply system. Directs the Secretary to establish and maintain a centralized computer system for recording and organizing such investigative information.

Amends the Federal criminal code to direct the Secretary to report the theft or other loss of any DOD supply to the Secretary of the Treasury within 24 hours after discovery.

Provides that it shall be unlawful for any licensed importer, manufacturer, or other person to place a U.S. military model or serial number on any firearm unless such firearm is being imported or manufactured for use by the United States. Revises Federal provisions relating to the offenses of: (1) attempted embezzlement of public money, property, or records; and (2) purchase or receipt of military, naval, or veterans' facilities property.

Provides that, upon the conviction of a person for the theft of Government property, any Federal benefits payable to him or her may be reduced, or (if the total value involved in the theft exceeds $500) terminated.