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<classification authority="sudocs">GA 1.13:NSIAD-97-48</classification>
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 <subject>Defense budgets</subject>
 <subject>Defense procurement</subject>
 <subject>Department of Defense contractors</subject>
 <subject>Contract costs</subject>
 <subject>Defense contracts</subject>
 <subject>Reengineering (management)</subject>
 <subject>Cost analysis</subject>
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<titleInfo>
 <title>Acquisition Reform: DOD Faces Challenges in Reducing Oversight Costs</title>
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<abstract>The Pentagon considers acquisition reform (lowering the cost of
acquiring weapon systems) to be one of its highest priorities. In an era
of shrinking military budgets, the Defense Department (DOD) plans to use
the savings from acquisition reform to pay for forces modernization. DOD
established a reinvention laboratory in September 1994 to help reduce
nonvalue added oversight requirements, thereby lowering contractors&apos;
compliance costs and the government&apos;s oversight costs. Overall, the
reinvention laboratory has made only limited progress in reducing the
cost of contractors&apos; compliance with government regulations and
oversight requirements. In particular, laboratory participants reported
little success in addressing nine of the top 10 cost drivers. DOD
officials said that the reinvention laboratory tended to receive little
top-level support from elsewhere in DOD. Other factors that limited
various projects included statutory and non-DOD regulatory requirements,
disagreements between DOD and contractors over the value of some
oversight requirements, and difficulties coordinating and obtaining
approval for proposed changes that involved multiple customers. These
results, however, should not deter DOD from continuing its efforts to
reduce nonvalue added oversight requirements. Sustained support from DOD
leadership is essential. From a budgetary perspective, the laboratory
results underscore the need for caution in estimating cost savings from
oversight reform.</abstract>
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 <topic>Defense budgets</topic>
 <topic>Defense procurement</topic>
 <topic>Department of Defense contractors</topic>
 <topic>Contract costs</topic>
 <topic>Defense contracts</topic>
 <topic>Reengineering (management)</topic>
 <topic>Cost analysis</topic>
 <topic>DOD Single Process Initiative</topic>
 <topic>F-15 Aircraft</topic>
 <topic>F-16 Aircraft</topic>
 <topic>F-22 Aircraft</topic>
 <topic>Navy Aegis Shipbuilding Program</topic>
 <topic>National Performance Review</topic>
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  <title>United States Public Law 1 (87th Congress)</title>
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 <identifier type="public law citation">Public Law 87-1</identifier>
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