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<classification authority="sudocs">GA 1.13:NSIAD-98-31</classification>
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 <subject>Defense cost control</subject>
 <subject>Advanced weapons systems</subject>
 <subject>Cost analysis</subject>
 <subject>Budget cuts</subject>
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 <title>Acquisition Reform: Effect on Weapon System Funding</title>
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<abstract>GAO reviewed the military services&apos; estimated acquisition reform cost
reductions on 63 major weapons programs to determine the extent to which
the reported cost reductions from acquisition reform will provide funds
from approved budgets to support weapons modernization.&lt;p/&gt;GAO noted that: (1) while GAO continues to support the Department of
Defense&apos;s (DOD) effort to reform its acquisition processes, GAO&apos;s review
raises concerns about the extent to which cost reductions from
acquisition reform that the services have reported will be available to
fund DOD&apos;s modernization program in the near term; (2) of the $29
billion in estimated cost reductions reported by the services, GAO&apos;s
analysis shows that only $7.2 billion or 25 percent of the reductions
are expected to occur between 1995 and 2002 from an approved budget; (3)
most of the remaining $21.8 billion reported by the services are
reductions that either occured before 1995 or are anticipated to occur
beyond fiscal year (FY) 2002; (4) a significant portion of the $7.2
billion had been used to meet needs within the program generating the
reduction; (5) acquisition reform cost reductions may be offset by cost
increases elsewhere in the programs; (6) analysis of 33 of the 63
programs reporting acquisition reform cost reductions shows that after
taking into account these reductions and after adjusting for inflation
and quantities of systems being bought, total acquisition costs for
these programs increased an average of 2 percent; (7) this suggests that
the estimated cost reductions from acquisition reform are being offset
by cost increases elsewhere in the programs or reinvested within the
programs; (8) consequently, few funds will be available for other DOD
acquisition programs; and (9) classified programs and others that could
not be fairly compared to the baseline were excluded from the analysis.</abstract>
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<note>Letter Report</note>
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 <topic>Procurement practices</topic>
 <topic>Defense cost control</topic>
 <topic>Advanced weapons systems</topic>
 <topic>Cost analysis</topic>
 <topic>Budget cuts</topic>
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