Defense Acquisitions Issue Area Plan--Fiscal Years 1996-98 (Letter
Report, 06/01/96, GAO/IAP-96-3).
GAO provided information on its Defense Acquisitions issue area plan for
fiscal years 1996 through 1998.
GAO plans to assess: (1) justifications for weapon and space system
modifications; (2) the Department of Defense's (DOD) and the National
Aeronautics and Space Administration's (NASA) acquisition strategies;
(3) DOD and NASA fiscal year (FY) 1997 research, development, test, and
evaluation and procurement budget requests; (4) DOD and NASA acquisition
management; and (5) weapon and space systems' technology and
competitiveness.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: IAP-96-3
TITLE: Defense Acquisitions Issue Area Plan--Fiscal Years 1996-98
DATE: 06/01/96
SUBJECT: Advanced weapons systems
Defense procurement
Research and development
Defense budgets
Defense cost control
Technology transfer
Competition
Defense industry
IDENTIFIER: C-17 Aircraft
F-22 Aircraft
V-22 Aircraft
F/A-18E/F Aircraft
B-2 Aircraft
Joint Strike Fighter
DOD Joint Primary Aircraft Training System
F-14 Aircraft
B-1B Aircraft
Comanche Helicopter
Army Crusader System
FS-X Aircraft
Navy Upper Tier Theater Missile Defense Program
China
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Cover
================================================================ COVER
National Security and International Affairs Division
June 1996
DEFENSE ACQUISITIONS ISSUE AREA
PLAN
FISCAL YEARS 1996-98
GAO/IAP-96-3
Abbreviations
=============================================================== ABBREV
DOD -
NASA -
RDT&E -
FOREWORD
============================================================ Chapter 0
As the investigative arm of Congress and the nation's auditor, the
General Accounting Office is charged with following the federal
dollar wherever it goes. Reflecting stringent standards of
objectivity and independence, GAO's audits, evaluations, and
investigations promote a more efficient and cost-effective
government; expose waste, fraud, abuse, and mismanagement in federal
programs; help Congress target budget reductions; assess financial
information management; and alert Congress to developing trends that
may have significant fiscal or budgetary consequences. In fulfilling
its responsibilities, GAO performs original research and uses
hundreds of databases or creates its own when information is
unavailable elsewhere.
To ensure that GAO's resources are directed toward the most important
issues facing Congress, each of GAO's 32 issue areas develops a
strategic plan that describes the significance of the issues it
addresses, its objectives, and the focus of its work. Each issue
area relies heavily on input from congressional committees, agency
officials, and subject-matter experts in developing its strategic
plan.
The Defense Acquisitions issue area covers programs of the Department
of Defense (DOD), the individual military services, and other
supporting defense agencies. It also is responsible for GAO's work
on the National Aeronautics and Space Administration (NASA). Its
work focuses on (1) the justification for new systems; (2)
development and acquisition (or major modification) of weapon and
space systems; (3) DOD's and NASA's budgeting for their procurement
and research, development, test, and evaluation (RDT&E) accounts; (4)
acquisition reform initiatives and reductions in acquisition
infrastructure; and (5) defense technologies and international
competitiveness. The principal issues in the defense acquisitions
area are
-- the adequacy of the justifications for systems selected for
development or modification;
-- the efficient, effective, and economical acquisition of systems;
-- assurance that funds budgeted for procurement and for RDT&E can
be and should be spent as indicated;
-- cost savings from acquisition reform initiatives and related
infrastructure reductions; and
-- the protection of critical defense technologies and the
enhancement of U.S. international competitiveness.
In the pages that follow, we describe our key planned work on these
issues.
Because events may significantly affect even the best of plans, our
process allows for updating the plan and responding quickly to
emerging issues. If you have any questions or suggestions about this
plan, please call me at (202) 512-4841.
Louis J. Rodrigues
Director
Defense Acquisitions Issues
CONTENTS
============================================================ Chapter 1
FOREWORD
---------------------------------------------------------- Chapter 1:1
1
TABLE I: KEY ISSUES
---------------------------------------------------------- Chapter 1:2
4
TABLE II: PLANNED MAJOR WORK
---------------------------------------------------------- Chapter 1:3
8
TABLE III: GAO CONTACTS
---------------------------------------------------------- Chapter 1:4
9
TABLE I: KEY ISSUES
=========================================================== Appendix 2
Issue Significance
---------------------------- --------------------------------------------------
Weapon and space systems Many of the military systems that are in planning
justification: Are DOD and or under development were designed to counter a
NASA selecting for Soviet threat that no longer exists. The notion of
development only those an all-out confrontation in Europe has given way
systems and modifications to concerns over regional instabilities. In light
that are adequately of these changes, justifications for weapon
justified? systems must be revisited to determine whether the
system supports a new strategy focused on regional
instabilities and to ensure that the appropriate
tradeoffs are being made in the current
constrained budget environment. NASA systems need
to be considered in light of significant
reductions in resources to achieve NASA's
mission.
Weapon and space systems Despite the many attempts at acquisition reform,
acquisition: Are DOD and significant problems continue to occur. Major
NASA ensuring that systems commitments to systems are still made before
are being acquired in an adequate testing ensures that the system will meet
efficient, effective, and critical performance requirements. Costs for
economical manner? systems continue to escalate. Some recent systems
have doubled in price. Schedules for the delivery
of systems continue to slip. New reform
initiatives are opening the door to government use
of the best acquisition practices in the private
sector. Use of these best practices can improve
the acquisition process and help ensure that
systems are acquired in the most efficient,
effective, and economical manner.
Budget analysis: Do Over $150 billion was requested in fiscal years
acquisition-related budgets 1996 and 1997 for the acquisition of military
reflect current needs and systems and support items. Analyzing planned
should prior-year funds be budgetary expenditures is necessary to identify
rescinded? those that are unnecessary and those that can and
should be delayed.
Acquisition management: Are The Federal Acquisition Streamlining Act and the
DOD and NASA streamlining Federal Acquisition Reform Act require GAO to
and improving their evaluate the implementation of several provisions
acquisition processes, across the federal government. In addition, DOD
practices, and has numerous reengineering initiatives and pilot
infrastructure while programs underway designed to further acquisition
ensuring public funds are reform and is expecting to see reductions in the
properly spent? acquisition infrastructure. The success of these
reform initiatives and reductions in
infrastructure are intended to improve the way DOD
buys its goods and services and provide DOD a
major source of the future funding for its
modernization program. At the same time, defense
acquisition and DOD and NASA contract management
remain high-risk areas for misuse of billions of
dollars in public funds.
--------------------------------------------------------------------------------
Objectives Focus of work
--------------------------------------- ---------------------------------------
� Determine whether the justifications � Justifications of major systems such
for new and modified systems are as C-17, F-22, V-22, and F/A-18 E/F;
reasonable and logical and support the helicopter development programs;
national military strategy. directed energy weapons; precision-
guided munitions; national and theater
� Determine whether DOD, the services, missile defense; the Navy's new arsenal
and NASA have adequately considered ship; the new attack submarine; and DOD
meeting stated requirements through and NASA space systems
alternative uses of or modifications to
current systems.
� Assess whether accurate cost
estimates are being developed and used
to determine which development programs
should be pursued and which systems
best meet requirements within limited
budgets.
� Determine whether DOD, the services, � Acquisitions of major systems such as
and NASA have selected the lowest risk B-2, F-22, Joint Primary Aircraft
and least costly acquisition strategies Training System, F-14, B-1B, Comanche,
consistent with the need for the F/A-18 E/F, and Joint Strike Fighter;
planned system or modification. DOD and NASA space systems; the
Crusader; Navy systems to improve
� Determine whether selected littoral warfare capability; and
acquisition strategies commit the digitized battlefield systems
government to production before
sufficient testing is accomplished.
� Ensure that key milestone decisions
in the acquisition process are timely
and are adequately supported.
� Identify whether technical problems
identified during testing affect the
system's capability and costs.
� Determine whether the services and
NASA are incorporating acquisition
reform initiatives into their processes
for acquiring new systems or modifying
current systems.
� Determine whether the services and
NASA are using the best acquisition
practices.
� Identify items in current budget � Reviews of the RDT&E and procurement
requests that should be considered for budget accounts for aircraft, C3I,
denial or reduction. ships, ground and DOD space systems,
missiles, munitions, ballistic missile
� Identify prior-year appropriations defense, Defense agencies, and NASA
that could be rescinded. systems
� Evaluate the implementation of � Acquisition reform initiatives such
governmentwide acquisition reform as the use of off-the-shelf and
legislation and the costs/benefits of nondevelopmental technology, Federal
new proposals. Acquisition Streamlining Act
evaluations, electronic commerce
� Identify best commercial acquisition systems, high-risk area updates,
practices that can be incorporated into evaluation of best acquisition
the DOD and NASA acquisition practices, and acquisition
processes. infrastructure adjustments
� Determine whether the savings that
have been estimated as a result of
acquisition reform and infrastructure
reductions are likely to materialize.
� Identify and report internal control
weaknesses in individual systems and in
the acquisition process that result in
fraudulent, wasteful, or abusive
practices in systems acquisitions.
--------------------------------------------------------------------------------
Issue Significance
---------------------------- --------------------------------------------------
Technology and As the defense industrial and technology base
competitiveness: Is DOD downsizes, pressures increase to export and
appropriately protecting transfer more advanced, front-line weapons and
technology while promoting technologies to maintain the base and jobs. The
competitiveness? challenge is to promote exports that maintain
critical industrial capabilities and help reduce
unit costs of weapons for DOD while retaining
technological leadership and superiority.
--------------------------------------------------------------------------------
Objective Focus of work
--------------------------------------- ---------------------------------------
� Evaluate the effectiveness of � Reviews of the U.S./Japan FS-X
policies to maintain, promote, and fighter program, European defense
protect critical defense technologies consolidation, export controls over
while enhancing U.S. international human viruses and other biological
competitiveness. agents, international cooperative
activities, justifications for certain
� Determine whether codevelopment and technology transfers, and benefits from
coproduction programs have sufficient international data exchange agreements
benefit to the United States to justify
the risks associated with technology
being transferred overseas.
� Identify the effect of international
collaborative efforts such as
cooperative development programs on
DOD's or NASA's ability to fund future
modernization initiatives.
--------------------------------------------------------------------------------
TABLE II: PLANNED MAJOR WORK
=========================================================== Appendix 3
Issue Planned major job starts
------------------------ ------------------------------------------------------
Weapon and space systems --C-17 affordability\a
justification --F/A-18 E/F program\a
--Navy's plans to develop an arsenal ship
--Directed energy weapons for defense against ships,
tactical aircraft, and missiles
--Precision-guided munitions acquisition
--Airborne laser boost phase intercept program
--Navy's upper tier theater missile defense program
Weapon and space systems --B-2 cost and performance\a
acquisition --F-22 status\a
--F-14 modernization programs
--Joint Strike Fighter requirements
--Joint Primary Aircraft Training System
--Comanche helicopter program
--Joint direct attack munition
--DOD's space plans, programs, and activities
--Army's Crusader program
--Navy's acquisition strategy in support of its
littoral warfare doctrine
--Space station development, operational planning, and
management
--Army's development of the digitized battlefield
Budget analysis --DOD and NASA's fiscal year 1997 RDT&E and
procurement budget requests for weapon and space
systems and intelligence programs\a
Acquisition management --Savings from acquisition reform\a
--Best quality assurance practices\a
--DOD's initiative to use commercial off-the-shelf and
nondevelopmental item alternatives
--Implementation of Federal Acquisition Streamlining
Act of 1994
--Comparison of military and commercial engineering
practices on major systems
--Best practices for source selection
--Opportunities to reduce excess aviation acquisition
infrastructure
--High risk update on defense contract management
Technology and --FS-X fighter program\a
competitiveness --Sensitive exports to China\a
--European defense consolidation
--Export controls over human viruses and other
biological agents
--U.S. benefits from international data exchange
agreements
--------------------------------------------------------------------------------
\a Ongoing assignments
TABLE III: GAO CONTACTS
=========================================================== Appendix 4
DIRECTOR
--------------------------------------------------------- Appendix 4:1
Louis J. Rodrigues (202) 512-4841
ASSOCIATE DIRECTORS
--------------------------------------------------------- Appendix 4:2
David E. Cooper
Katherine V. Schinasi
Thomas J. Schulz
Thomas J. Brew (Denver)
ASSISTANT DIRECTORS
--------------------------------------------------------- Appendix 4:3
Davi M. D'Agostino
Francis P. Degnan, Jr.
Thomas J. Denomme
Raymond Dunham
Lee A. Edwards (Huntsville)
Paul L. Francis
John K. Harper
Steven F. Kuhta
Howard R. Manning
Robert D. Murphy (Dayton)
Richard J. Price
Charles F. Rey
James K. Spencer
Clifton E. Spruill
Robert J. Stolba
Kevin M. Tansey
Charles W. Thompson
Homer H. Thomson
Karen S. Zuckerstein
*** End of document. ***