Defense Microelectronics: DOD-Funded Facilities Involved in	 
Research Prototyping or Production (11-MAR-05, GAO-05-278).	 
                                                                 
The Department of Defense's (DOD) ability to provide superior	 
capabilities to the warfighter is dependent on its ability to	 
incorporate rapidly evolving, cutting-edge microelectronic	 
devices into its defense systems. While many commercial 	 
microelectronics advances apply to defense systems, DOD has some 
unique microelectronics needs not met by industry. Therefore, to 
maintain military superiority, DOD has the challenge of 	 
exploiting state-of-the-art commercial microelectronics 	 
technology and focusing its research investments in areas with	 
the highest potential return for defense systems. Given the	 
importance of advanced microelectronics to defense systems and	 
the rapid changes in these technologies, Congress asked GAO to	 
(1) identify and describe DOD and federally funded research and  
development center (FFRDC) facilities that receive funding from  
DOD for microelectronics production or research prototyping and  
(2) describe how DOD coordinates investments in microelectronics 
research.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-05-278 					        
    ACCNO:   A19157						        
  TITLE:     Defense Microelectronics: DOD-Funded Facilities Involved 
in Research Prototyping or Production				 
     DATE:   03/11/2005 
  SUBJECT:   Defense capabilities				 
	     Defense industry					 
	     Defense procurement				 
	     Electronic warfare 				 
	     Military facilities				 
	     Military research and development			 
	     Research and development facilities		 
	     Research programs					 
	     Joint Strike Fighter				 
	     Space Based Infrared System-High			 
	     Trident II Strategic Weapon System 		 

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GAO-05-278

United States Government Accountability Office

GAO	Report to the Chairman, Subcommittee on Tactical Air and Land Forces,
             Committee on Armed Services, House of Representatives

March 2005

DEFENSE MICROELECTRONICS

      DOD-Funded Facilities Involved in Research Prototyping or Production

GAO-05-278

[IMG]

March 2005

DEFENSE MICROELECTRONICS

DOD-Funded Facilities Involved in Research Prototyping or Production

                                 What GAO Found

At the time of our review, eight DOD and FFRDC facilities that received
funding from DOD were involved in microelectronics research prototyping or
production. Three of these facilities focused solely on research; three
primarily focused on research but had limited production capabilities; and
two focused solely on production. The research conducted ranged from
exploring potential applications of new materials in microelectronic
devices to developing a process to improve the performance and reliability
of microwave devices. Production efforts generally focus on devices that
are used in defense systems but not readily obtainable on the commercial
market, either because DOD's requirements are unique and highly classified
or because they are no longer commercially produced. For example, one of
the two facilities that focuses solely on production acquires process
lines that commercial firms are abandoning and, through
reverse-engineering and prototyping, provides DOD with these abandoned
devices. During the course of GAO's review, one facility, which produced
microelectronic circuits for DOD's Trident program, closed. Officials from
the facility told us that without Trident program funds, operating the
facility became cost prohibitive. These circuits are now provided by a
commercial supplier. Another facility is slated for closure in 2006 due to
exorbitant costs for producing the next generation of circuits. The
classified integrated circuits produced by this facility will also be
supplied by a commercial supplier.

DOD has several mechanisms in place aimed at coordinating and planning
research conducted by the military services and defense agencies. One key
mechanism is identifying defense technology objectives-the specific
technology advancements that will be developed or demonstrated across
multiple joint capabilities and technology areas. As of February 2004,
there were almost 400 defense technology objectives; five of these were
identified as microelectronics. DOD also collaborates with industry to
review and assess special technology areas and make recommendations about
future electronics and microelectronics research.

 Microelectronics Worker in Clean Room Processing Area United States Government
                             Accountability Office

Contents

     Letter                                                                 1 
                                    Results in Brief                        2 
                                       Background                           3 
               DOD and FFRDC Facilities Receiving DOD Funding Have Varying 
                    Microelectronics Research and Production Focuses        7 
                  DOD Has Several Mechanisms for Coordinating Research     12 
                                     Agency Comments                       17 
Appendix I                     Scope and Methodology                    
Appendix II           Comments from the Department of Defense           

  Appendix III GAO Contact and Staff Acknowledgments 21

GAO Contact 21 Acknowledgments 21

  Tables

Table 1: Summary of DOD and FFRDC Facilities Receiving Funding from DOD
with Research Prototyping or Production Capability through Fiscal Year
2004 11

Table 2: Defense Reliance Process Planning Documents 13

  Figures

Figure 1: DOD Budget Authority in Billions, by Major Category for Fiscal
Year 2005 4 Figure 2: Recipients of DOD Research and Advanced Technology

Development Funds for Fiscal Year 2003 5 Figure 3: Microelectronics Worker
in Clean Room Processing Area 6 Figure 4: DOD and FFRDC Facilities with
Microelectronics

Research Prototyping and/or Production Capabilities That

Receive Funding From DOD 8 Figure 5: Defense Reliance Process 14 Figure 6:
Defense Technology Objectives by Technology Area 16

Abbreviations

DMEA Defense Microelectronics Activity
DOD Department of Defense
FFRDC federally funded research and development center
NSA National Security Agency
SPAWAR Space and Naval Warfare Systems Command
S&T science and technology

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separately.

United States Government Accountability Office Washington, DC 20548

March 11, 2005

The Honorable Curt Weldon

Chairman, Subcommittee on Tactical Air and Land Forces Committee on Armed
Services House of Representatives

Dear Mr. Chairman:

Advanced microelectronics are an enabling technology for many U.S. defense
systems. Satellites and communications equipment, for example, are reliant
on advanced microelectronics that must meet stringent military
requirements such as withstanding radiation and extreme-temperature
environments, operating for longer periods of time, and performing at
higher power levels. The Department of Defense's (DOD) ability to provide
superior capabilities to the warfighter is dependent on its ability to
incorporate rapidly evolving, cutting-edge microelectronic devices into
its defense systems. While many commercial advances are applicable to
defense systems, DOD has some unique microelectronics research and
production needs not met by industry. Therefore, to maintain military
superiority, DOD faces the challenge of exploiting state-of-the-art
commercial microelectronics technology while focusing DOD research
investments in areas with the highest potential return for defense
systems.

Given the importance of advanced microelectronics to DOD's defense systems
and the rapid changes in these technologies, you asked us to (1) identify
and describe DOD and federally funded research and development center
(FFRDC)1 facilities that receive funding from DOD for microelectronics
production or research prototyping and (2) describe how DOD coordinates
investments in microelectronics research.

We visited and toured all DOD and FFRDC facilities identified by DOD as
having capability to produce or prototype microelectronics, interviewed

1FFRDCs meet some special long-term research or development needs of the
government and are operated, managed, and/or administered by either a
university or consortium of universities, other not-for-profit or
nonprofit organization, or an industrial firm, as an autonomous
organization or as an identifiable separate operating unit of a parent
organization.

  Results in Brief

facility officials, and obtained documentation to describe each facility.
We interviewed the Executive Staff of the Defense Science and Technology
Reliance process and other DOD officials and obtained and reviewed
applicable documentation to determine how DOD coordinates investments in
microelectronics research. Because microelectronics is a part of a much
broader area of research, we looked at DOD's overall research coordination
in addition to microelectronics-specific areas. We performed our review
from November 2003 to January 2005 in accordance with generally accepted
government auditing standards.

At the time of our review, eight DOD or FFRDC facilities that received
funding from DOD were involved in microelectronics research prototyping or
production-three focused solely on research, three primarily focused on
research but had limited production capabilities, and two focused solely
on production. The research conducted ranged from exploring potential
applications of nonsilicon materials in microelectronic devices to
developing a process to improve the performance and reliability of
microwave devices. Production efforts generally focused on devices that
are used in defense systems but not readily obtainable on the commercial
market, either because their requirements are unique and highly classified
or because they are no longer commercially produced. One facility that
focused primarily on research but which produced microelectronic circuits
for DOD's Trident program closed on October 31, 2004. Officials from the
facility told us that without the funds from the Trident program,
operating the facility became cost prohibitive. These circuits are now
provided by a commercial supplier. Another facility-which produces
classified integrated circuits-is slated for closure in 2006 because it
would cost an estimated $1.7 billion to produce the next generation of
integrated circuits. These circuits will also be supplied by a commercial
supplier. Additional changes to other facilities could occur pending the
review of DOD's Base Realignment and Closure Commission.

DOD has several mechanisms in place aimed at coordinating and planning
research conducted by the Air Force, Army, Navy and defense agencies. One
key mechanism is annually identifying defense technology objectives-the
specific technology advancements that will be developed or demonstrated
across multiple joint capabilities and technology areas. As of February
2004, there were almost 400 defense technology objectives; five of these
were identified as microelectronics. DOD also periodically collaborates
with industry to review and assess special technology areas and make
recommendations about future electronics and microelectronics research.

Background

Microelectronics focuses on the study and manufacture of micro devices,
such as silicon integrated circuits, which are fabricated in submicron
dimensions and form the basis of all electronic products. In DOD research,
microelectronics extends beyond silicon integrated circuits and cuts
across scientific disciplines such as biological sciences, materials
sciences, quantum physics, and photonics. DOD research also covers many
different types of materials, devices, and processes. For example, DOD
service laboratories conduct research in materials other than silicon,
such as gallium nitride, indium arsenide, and silicon carbide-materials
that could provide higher performing or more reliable devices to meet DOD
needs.

DOD's overall budget authority for fiscal year 2005 was approximately $400
billion. About $69 billion, or 17 percent of the overall budget, was
directed toward research and development activities.2 The vast majority of
this funding goes to development programs for major systems such as the
Joint Strike Fighter and the Space Based Infrared System High. About $5.2
billion, or about 1.3 percent of the overall budget, was directed toward
research (see fig. 1). Because DOD tracks funding by funding category, not
by specific technology area, the microelectronics portion of this funding
category cannot be broken out.

2Research is the systematic study directed toward fuller scientific
knowledge. Development is the systematic application of knowledge directed
toward the production of useful materials, devices, and systems.
Development categories range from advanced technology development,
including prototypes and scaled models, to operational systems
development.

 Figure 1: DOD Budget Authority in Billions, by Major Category for Fiscal Year
                                      2005

Dollars in billions

                                      141

                                 Research (5.2)

y

Militarper

sonnelOperations andmaintenancePr

                                ocurementResear

h andc

vede

                                    lopment

Source: DOD.

DOD research and technology development is conducted by universities, DOD
laboratories, industry, and other organizations.3 Universities and

DOD laboratories are primarily involved in research. Once a new device is
proven and has potential application for DOD, the technology is
transferred to industry to further develop and ultimately produce and
integrate into defense systems. These organizations may collaborate on
microelectronics projects through various arrangements, such as
cooperative research and development agreements and collaborative
technology alliances. Figure 2 shows the distribution of DOD research and
advanced technology development funding by performing organizations.4

3Other organizations include nonprofit institutions, international
organizations, and FFRDCs.

4Fiscal year 2003 is the most recent data available on the distribution of
funds by organization.

Figure 2: Recipients of DOD Research and Advanced Technology Development
Funds for Fiscal Year 2003

Dollar in billions

4.0

3.5

                                      3.2

3.0

2.5

2.0

1.5

1.0

0.5

0 Basic researcha Applied researchb Advanced

                                   technology

                                  developmentc

Universities

DOD laboratories

Industry

Other

Source: National Science Foundation.

Note: Data from National Science Foundation, Federal Funds for Research
and Development, Volume 51 (Washington, D.C.: March 2004).

aBasic research is directed towards greater understanding of fundamental
aspects of phenomena related to long-term national security needs without
specific applications to processes or products.

bApplied research translates promising basic research into solutions for
broadly defined military needs that are short of system development.

cAdvanced technology development involves development of subsystems and
components and efforts to integrate subsystems and components into system
prototypes for field experiments and/or tests in a simulated environment.

Microelectronics production and research prototyping require specialized
equipment and facilities. To prevent flaws in production, microelectronic
devices are produced in clean rooms where the air is constantly filtered,
and temperature, humidity, and pressure may be regulated. Clean rooms are
rated according to a federal standard. For example, a class 1000 clean
room has no more than 1000 particles larger than 0.5 microns in a cubic
foot of air, while a class 100 clean room has no more than 100 particles.

The people who work in clean rooms wear special protective clothing that
prevents workers from contaminating the room (see fig. 3).

Figure 3: Microelectronics Worker in Clean Room Processing Area

Source: Defense Microelectronic Activity.

The equipment found at research facilities and at production facilities
are similar but are used for different purposes. Because research
facilities focus on developing new device concepts, materials, and
processes, the equipment is set up for flexibility because it is used for
different experiments to prove concepts and validate theories. Once a
technology is sufficiently developed, a small quantity is prototyped in a
production environment to prove the design. Production facilities are set
up to produce higher volumes of microelectronics and have more automation
and multiple sets of equipment to increase productivity.

  DOD and FFRDC Facilities Receiving DOD Funding Have Varying Microelectronics
  Research and Production Focuses

At the time of our review, eight DOD and FFRDC facilities that received
funding from DOD were involved in microelectronics research prototyping or
production. Three military facilities focused solely on research; three
primarily focused on research but had limited production capabilities; and
two focused solely on production (see fig. 4).

Figure 4: DOD and FFRDC Facilities with Microelectronics Research
Prototyping and/or Production Capabilities That Receive Funding From DOD

Source: GAO based on DOD data.

Note: MIT Lincoln Laboratory and Sandia National Laboratories are FFRDCs.

The three military facilities provide basic and applied research covering
a wide spectrum of microelectronic devices and materials. For example, the
Naval Research Laboratory facility is conducting basic research on the
potential application of nonsilicon materials in microelectronic devices.
Through its applied research, the Air Force Research Laboratory facility

developed a process to improve the performance and reliability of
microwave devices needed for military radar and communications systems.
This technology was ultimately transferred from the Air Force to various
contractors and used in a number of systems, including the Joint Strike
Fighter. The Army Research Laboratory facility conducts both basic and
applied research, primarily on multifunction radiofrequency,
optoelectronics, and power conversion.

Three other facilities also conduct research but can produce prototypes or
limited numbers of devices if commercial sources are not available. For
example, the Lincoln Laboratory's facility-which primarily focuses on
applied research in sensing and signal processing technologies-has
developed components for the space-based visible sensor because no
commercial source was available to meet this DOD need.5 Sandia's facility
primarily focuses on research and design of radiation hardened
microelectronics.6 However, because the number of commercial producers
able to meet the radiation requirements of the Department of Energy and
DOD has dwindled to two suppliers, Sandia maintains limited in-house
production capability to fill near-term critical needs. According to
Sandia officials, they have not been called upon to produce
microelectronics for DOD in recent years. The SPAWAR facility, which
recently closed, primarily conducted research on radiation-hardened
microelectronics, but at one time produced these devices for the Navy's
Trident missile system. When production of these devices was transferred
to a commercial supplier, the facility maintained capability to produce
microelectronics as a back-up to the commercial supplier.

Two facilities focused only on production-one on leading edge technology
and one on lagging edge technology.7 NSA's microelectronics facility
focuses on producing cryptographic microelectronics-devices not readily
obtainable on the commercial market because of their unique and highly
classified requirements. DMEA fills a unique role within DOD by providing
solutions to microelectronics that are no longer commercially

5The prototypes were demonstrated on the Midcourse Space Experiment
satellite.

6Sandia primarily operates for the Department of Energy; in fiscal year
2003, only about 1 percent of Sandia's microelectronics research funding
came from DOD.

7According to DOD officials, "lagging edge" technology generally refers to
unprofitable process lines for fabricating technologies that are abandoned
by commercial firms.

available.8 DMEA acquires process lines that commercial firms are
abandoning and, through reverse-engineering and prototyping, provides DOD
with these abandoned devices. In some cases, DMEA may produce the device.

The type and complexity of research conducted or device produced largely
determines a facility's clean room class and size and its equipment
replacement costs.9 For example, to produce cryptographic electronics, NSA
has a 20,000 square foot class 10 clean room facility. In contrast, the
Naval Research Laboratory conducts research in a 5,000 square foot class
100 clean room facility, with some class 10 modules where greater
cleanliness is required. In general, research does not require
state-of-theart equipment to prove concepts, and tools can be purchased
one at a time and are often second-hand or donated.

Table 1 summarizes the eight facilities' microelectronics focus, clean
room class and size, and equipment replacement costs.

8While DOD typically supports defense systems for many years or decades,
microelectronics have limited product life cycles.

9Replacement costs generally include the equipment for clean room
processing, testing, characterization, and materials growth used primarily
for microelectronics.

Table 1: Summary of DOD and FFRDC Facilities Receiving Funding from DOD
with Research Prototyping or Production Capability through Fiscal Year
2004

Processing clean Equipment Facility Microelectronics focus room (class:
size) replacement costa

Research only

Air Force Research Laboratory, Applied research: sensors
Sensors Directorate (radiofrequency, electro-optical);
Dayton, Ohio automatic target recognition and sensor

fusion

Army Research Laboratory, Sensors Basic and applied research:
multifunction
and Electron Devices Directorate radiofrequency electronics,
Adelphi, Md. optoelectronics, power conversion

Naval Research Laboratory, Basic research: wide bandgap, narrow
Electronics Science and Technology bandgap, group IV materials
Division
Washington, D.C.

100: 6,000 sq. ft.

10: modules

100: 10,000 sq. ft.

10: 4,800 sq. ft.

100: 5,000 sq. ft.

10: modules

$13 million

$42 million

                         (includes $9 million for materials growth equipment)

$20-$30 million

                  Research with limited production capability

MIT Lincoln Laboratory, Solid State Applied research: sensors, signal 100:
10,000 sq. ft. $40 million Division processing 10: 8,100 sq. ft.

Lexington, Mass. 	Production: experimental sensors and imagers not
commercially available

b

1: 12,500 sq. ft. $250 million

Sandia National Laboratories
(Department of Energy),
Microelectronics Development
Laboratory
Albuquerque, N.M.

Basic and applied research: microscale and acoustic sensors,
radiation-hardened applications

Production: backup radiation-hardened producer to BAE Systems and
Honeywellc

 SPAWAR, Integrated Circuit Applied research: radiation-hardened 100: 7,900 sq.
                                ft. $30 million

Fabrication Facility (closed October
31, 2004)
San Diego, Calif.

circuits, radiofrequency/analog mixed signal

Production: backup radiation-hardened producer to Honeywell due to similar
processes

10: modules

Production only

National Security Agency (NSA),

Production: cryptographic electronics 10: 20,000 sq. ft. $1.7 billiond
(phasing out

Special Processing Laboratory Fort Meade, Md.

the Special Processing Laboratory in 2006)

 Defense Microelectronics Activity Sustainment prototyping and production: 100:
                                 5,500 sq. ft.

e

                                  $12 million

(DMEA) Sacramento, Calif.

Provides DOD-wide microelectronics solutions for sustainment issues (when
parts are no longer commercially available)

                                 5-10: modules

Source: GAO based on information provided by each facility.
aThese are self-reported data from each facility.
bHigher equipment replacement cost is due to a requirement to maintain
production capability.

cBAE Systems and Honeywell recently received capital funding under the
Defense Production Act, Title III Program to assist in technology upgrades
for their fabrication facilities that produce radiationhardened devices.

dThis figure includes facility and equipment upgrade costs.

eDMEA has lower equipment costs because it uses older technologies and
buys used, less expensive equipment.

Since we began our review, the SPAWAR facility closed on October 31, 2004,
making Sandia the only backup to the two remaining commercial
radiation-hardened suppliers to DOD. Officials from the facility told us
that without funds from the Trident program, operating the facility became
cost prohibitive. Further, NSA's microelectronics facility is slated for
closure in 2006. NSA estimated that it would cost $1.7 billion to upgrade
its equipment and facility to produce the next generation of integrated
circuits. NSA is contracting with IBM to take over production of the
microelectronic devices produced at its facility. Part of the contract
costs includes security requirements for IBM to produce classified
circuits. There may be changes to other facilities pending the review of
the Base Realignment and Closure Commission for 2005.10 As a result of
prior commission recommendations, the Army constructed a new facility to
consolidate Army specialized electronics research into one location.

DOD has several mechanisms in place aimed at coordinating and planning
research conducted by the Air Force, Army, Navy, and defense agencies. In
electronics and microelectronics research, DOD works with industry to
review special technology areas and make recommendations about future
research.

  DOD Has Several Mechanisms for Coordinating Research

    Defense Reliance Process is the Central Mechanism for Coordinating Research
    across DOD Organizations

DOD's Defense Reliance process provides the Department with a framework to
look across science and technology (S&T)11 efforts of the Defense Advanced
Research Projects Agency, Defense Threat Reduction Agency, and the Missile
Defense Agency as well as the Army, Navy, and Air Force. Each service and
defense agency updates its own S&T plans with the needs of each
organization in mind. The Defense Reliance process is

10The Base Realignment and Closure Commission is periodically established
to review DOD facilities, including laboratories, for potential closure or
realignment. The National Defense Authorization Act for Fiscal Year 2002
(Pub. L. No. 107-107 S: 3001 (2001)) established the commission for 2005.

11S&T includes basic and applied research and advanced technology
development.

intended to improve coordination and determine if the overall DOD S&T
vision and strategy are being met. The Defense Science and Technology
Strategy document is updated periodically to provide a high-level
description of what the science and technology programs aim to accomplish.
The Defense Reliance process includes the development of three planning
documents, which taken together provide a near-, mid-, and long-term look
at DOD specific research needs (see table 2).

Table 2: Defense Reliance Process Planning Documents

                                Plan Description

Basic Research Presents DOD's objectives and investment strategy for DOD

(Updated biennially) 	sponsored basic research performed by universities,
industry, and service laboratories.

Joint Warfighting Looks at the applied research, advanced technology
Science and development, and advanced concept technology
Technology demonstration portions of the services' and defense agencies'
(Updated annually) science and technology plans to ensure that the S&T
program

supports priority future joint warfighting capabilities.

Defense Technology Presents DOD's objectives and the applied research and
Area advanced technology development investment strategy for (Updated
biennially) technologies critical to DOD acquisition plans, service

warfighter capabilities, and the Joint Warfighting Science and Technology
Plan. It also takes a horizontal perspective across service and defense
agency efforts, thereby charting the total DOD investment for a given
technology.

Source: DOD Defense Reliance Executive Staff.

The planning documents present the DOD S&T vision, strategy, plan, and
objectives for the planners, programmers, and performers of defense S&T
and guide the annual preparation of the defense program and budget. Figure
5 illustrates the relationship between the planning documents and overall
reliance process.

Figure 5: Defense Reliance Process

                         Source: GAO based on DOD data.

Note: Defense technology objectives identify a specific technology
advancement that will be developed or demonstrated.

Science and technology efforts are planned and funded through service and
defense agency plans. To obtain a perspective across DOD, a portion of the
service and agency efforts are represented in the various Defense Reliance
planning documents. DOD's goal is to have about half of the investment in
service and agency efforts12 represented in defense technology
objectives.13 According to DOD officials, this goal is aimed at balancing
flexibility-which services and defense agencies need to pursue research
that is important to their organizations-with oversight and coordination.
DOD officials stated that looking at a portion of the efforts provide an
adequate perspective of the S&T research across the services and defense
agencies to help ensure the goals of DOD's S&T strategy are

12Efforts pertain to applied research and advanced technology development
projects.

13The actual percentage fluctuates from year to year as defense technology
objectives are completed and new ones are added. DOD officials estimate
that approximately 36 percent of its funded projects in 2004 were
represented in defense technology objectives.

Defense Technology Objectives and Technology Area Review and Assessments

being met. These projects are generally considered high priority, joint
efforts, or both.

Two key components in the Defense Reliance process are the defense
technology objectives and technology area review and assessments. Defense
technology objectives are intended to guide the focus of DOD's science and
technology investments by identifying the following

o 
objectives, the specific technology advancements that will be developed or
demonstrated;

o 
payoffs, the specific benefits to the warfighter resulting from the
technology advancement;

o  challenges, the technical barriers to be overcome;

o 
milestones, planned dates for technical accomplishments, including the
anticipated date of technology availability;

o  metrics, a measurement of anticipated results;

o  customers sponsoring the research; and

o 
funding that DOD estimates is needed to achieve the technology
advancements.

Both the Joint Warfighting and Defense Technology Area plans are comprised
of defense technology objectives that are updated annually. In its 2004
update, DOD identified 392 defense technology objectives -130 in the Joint
Warfighting Science and Technology Plan across five joint capabilities,
and 262 in the Defense Technology Area Plan across 12 technology areas.
Microelectronics falls within the sensors, electronics, and electronic
warfare area. There are 40 defense technology objectives in this area;
five were identified as microelectronics (see fig. 6). However, according
to DOD officials, research relating to microelectronics is not limited to
these five defense technology objectives because microelectronics is an
enabling technology found in many other research areas. For example,
research in electronic warfare is highly dependent on microelectronics.

Figure 6: Defense Technology Objectives by Technology Area

                                  Source: DOD.

To provide an independent assessment of the planned research, DOD uses
Technology Area Review and Assessment panels. DOD strives to have a
majority of the Technology Area Review and Assessment team members from
outside DOD, including other government agencies, FFRDCs, universities,
and industry. Most team members are recognized experts in their respective
research fields. The Technology Area Review and Assessment panels assess
DOD programs against S&T planning guidance, defense technology objectives,
affordability, service-unique needs, and technology opportunities; and
provide their assessments and recommendations to the Defense Science and
Technology Advisory Group.

    Other Coordination Mechanisms for Electronics Research

  Agency Comments

For the electronics research area, additional industry and university
insight is obtained through the Advisory Group on Electron Devices. DOD
established this advisory group to help formulate a research investment
strategy by providing ongoing reviews and assessments of
governmentsponsored programs in electronics, including microelectronics.
The advisory group is comprised of experts representing the government,
industry, and universities, who provide DOD with current knowledge on the
content and objectives of various programs under way at industry,
university, and government laboratories.

Periodically, the advisory group conducts special technology area reviews
to evaluate the status of an electronics technology for defense
applications. The advisory group also serves as a bridge between
electronic system and component developers within DOD by establishing
regular, periodic interactions with system program offices, industry
system developers, and government and industry components developers.

We provided a draft of this report to DOD for review. In its response, DOD
did not provide specific written or technical comments (see app. II).

We are sending copies of this report to interested congressional
committees; the Secretary of Defense; and the Director, Office of
Management and Budget. We will make copies available to others upon
request. In addition, this report will be available at no charge on the
GAO Web site at http://www.gao.gov.

Please contact me at (202) 512-4841 if you or your staff has any questions
   	concerning this report. Major contributors to this report are listed
in	appendix III. 	

Sincerely yours, 	

Ann Calvaresi-Barr	Director	Acquisition and Sourcing Management	

                      Appendix I: Scope and Methodology 	

To identify and describe DOD and FFRDC facilities that receive funding
from DOD for microelectronics production or research prototyping, we
visited all eight facilities identified by DOD as having capability to
produce or prototype microelectronics. Using a set of structured
questions, we interviewed officials at each facility to determine their
microelectronics focus, clean-room and equipment characteristics, and
types of research, production and/or research prototyping the facility
provides. We also obtained and analyzed supporting documents and toured
the facilities. We did not include in our scope universities or commercial
firms that also conduct DOD research and have microelectronics facilities.

Because microelectronics is a part of a much broader area of research, we
looked at DOD's overall research coordination in addition to
microelectronics-specific areas. To determine how DOD coordinates its
research investments, we interviewed officials from the Executive Staff of
the Defense Science and Technology Reliance process; the Office of the
Deputy Under Secretary of Defense for Science and Technology (Space and
Sensor Technology); and the Advisory Group on Electron Devices. We also
obtained and reviewed DOD's defense research planningdocuments-including
the Basic Research Plan, the Defense Technology Area Plan, Joint
Warfighting Science and Technology Plan, and the Defense Technology
Objectives document. We also met with Defense Advanced Research Projects
Agency officials to discuss their role in sponsoring DOD research and
development activities. In addition, at the DOD service laboratories that
we visited, we obtained information on microelectronics related research
projects.

We performed our review from November 2003 to January 2005 in accordance
with generally accepted government auditing standards.

  Appendix II: Comments from the Department of Defense

Page 20 GAO-05-278 Defense Microelectronics

  Appendix III: GAO Contact and Staff Acknowledgments

GAO Contact Anne-Marie Lasowski, (202) 512-4146

Acknowledgments
In addition to the individual named above, Bradley Terry, Lisa Gardner,
Karen Sloan, Hai Tran, Brian Eddington, and Steven Pedigo made key
contributions to this report.

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