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<classification authority="sudocs">GA 1.13:NSIAD-98-145</classification>
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 <reportNumber>NSIAD-98-145</reportNumber>
 <subject>Advanced weapons systems</subject>
 <subject>Military coproduction agreements</subject>
 <subject>Defense budgets</subject>
 <subject>Cost analysis</subject>
 <subject>Defense capabilities</subject>
 <subject>Defense cost control</subject>
 <subject>Technology transfer</subject>
 <subject>Air defense systems</subject>
 <subject>International cooperation</subject>
 <identifier>THAADS</identifier>
 <identifier>SDI Theater High Altitude Area Defense System</identifier>
 <identifier>C-130 Aircraft</identifier>
 <identifier>Medium Extended-Range Air Defense System</identifier>
 <identifier>HAWK Missile</identifier>
 <identifier>Patriot PAC-3</identifier>
 <identifier>Navy Theater Ballistic Missile Defense Program</identifier>
 <identifier>Germany</identifier>
 <identifier>Italy</identifier>
 <identifier>France</identifier>
 <type>Letter Report</type>
 <seriesAbbrev>NSIAD</seriesAbbrev>
 <USCode title="22">
                      <section detail="(a)" number="2753"></section>
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<titleInfo>
 <title>Defense Acquisition: Decision Nears on Medium Extended Air Defense System</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Department of
Defense&apos;s (DOD) Medium Extended Air Defense System (MEADS) program,
focusing on the: (1) unique capabilities that MEADS will add to U.S. air
and missile defense; (2) development cost of MEADS and its affordability
within the expected ballistic missile defense budget; and (3) impact
that international development will have on MEADS cost and capability.&lt;p/&gt;GAO noted that: (1) if the Army is successful in meeting established
requirements, MEADS will have capabilities that no other planned theater
missile defense system will possess; (2) the system should defeat a wide
range of threats arriving from any direction, be transportable within
theater by small transport aircraft, be mobile enough to travel cross
country or over unimproved roads with the maneuver force, and be
sufficiently lethal to negate weapons of mass destruction; (3) acquiring
MEADS will affect higher priority missile programs or the infrastructure
that supports those programs unless DOD increases the Ballistic Missile
Defense Organization&apos;s (BMDO) budget allocation; (4) BMDO forecasted in
March 1998 that it needed about $1.8 billion for fiscal year (FY) 1999
though FY 2007 to pay its portion of MEADS&apos; estimated $3.6-billion
design and development cost; (5) in addition, BMDO will need another
$10.1 billion for FY 2005 through FY 2016 to acquire eight battalions of
equipment; (6) the European partners are expected to contribute about
one-half of the design and development funds; (7) thus, for FY 1999
through FY 2005--the years for which BMDO is now budgeting--the U.S.
cost could be reduced to about $1.4 billion; (8) BMDO has no funds
budgeted for MEADS after FY 1999 and has been reviewing various program
options to find a less expensive acquisition strategy; (9) DOD officials
believe that a joint cooperative effort with U.S. allies is the best
means of acquiring MEADS because it reduces cost, improves political
ties, and builds a more effective coalition force; (10) however, DOD did
not fully assess funding and technology transfer issues before
initiating the international program and may not be able to achieve
these benefits; (11) U.S. and European program participants said that
the United States may be viewed as an unreliable partner if it cannot
fund its portion of the program, which could threaten the U.S.&apos; ability
to participate in future collaborative efforts; (12) even if the United
States remains in the program, it may have difficulty developing a truly
interoperable weapon without sharing valuable technology; (13) the
international structure may also prevent contractors from pursuing the
most cost-effective system solution; (14) contractors are finding it
difficult to use existing technology developed for other systems because
the process for transferring U.S. information to foreign countries is
slow and the United States is reluctant to transfer some critical
technology; and (15) difficulties might have been avoided if security
experts had been included in negotiations of the international
agreement.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-98-145</identifier>
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<note>Letter Report</note>
<extension>
 <searchTitle>GAO/NSIAD-98-145; Defense Acquisition: Decision Nears on Medium Extended Air Defense System;
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<subject>
 <topic>Advanced weapons systems</topic>
 <topic>Military coproduction agreements</topic>
 <topic>Defense budgets</topic>
 <topic>Cost analysis</topic>
 <topic>Defense capabilities</topic>
 <topic>Defense cost control</topic>
 <topic>Technology transfer</topic>
 <topic>Air defense systems</topic>
 <topic>International cooperation</topic>
 <topic>THAADS</topic>
 <topic>SDI Theater High Altitude Area Defense System</topic>
 <topic>C-130 Aircraft</topic>
 <topic>Medium Extended-Range Air Defense System</topic>
 <topic>HAWK Missile</topic>
 <topic>Patriot PAC-3</topic>
 <topic>Navy Theater Ballistic Missile Defense Program</topic>
 <topic>Germany</topic>
 <topic>Italy</topic>
 <topic>France</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Code</title>
  <partNumber>Title 22 Section 2753(a)</partNumber>
</titleInfo>
 <identifier type="USC citation">22 U.S.C. 2753(a)</identifier>
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