United States General Accounting Office

GAO National Security and International

Affairs Division

May 1997 Defense

Acquisitions

Issue Area Plan,

Fiscal Years

1997-99

GAO/IAP-97-7

Forward

The General Accounting Office’s goal is to provide unbiased analysis and

timely, accurate information for decisionmakers in the Congress and

executive agencies. Our work results in such products as reports,

briefings, and testimonies. The Defense Acquisitions issue area is 1 of 

32 issues for which GAO periodically develops multiyear strategic plans.

Relying heavily on consultation with congressional committees, as well as

with industry, academia, and agency officials and other experts

knowledgeable of the issues, GAO develops strategic plans to ensure that

GAO’s limited resources are directed at the most important issues of

concern to the Congress. For each issue area, GAO’s strategic plan

describes the significance of the issues, our objectives, and the focus of

our work.

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) the management of the acquisition

process, including acquisition reform initiatives and reductions in

acquisition infrastructure; and (5) international collaboration and defense

trade. The principal issues we cover are the

• adequacy of the justifications for systems selected for development or

modification;

• efficient, effective, and economical acquisition of systems;

• assurance that funds budgeted for procurement and for research,

development, test, and evaluation can be and should be spent as indicated;

• cost savings from acquisition reform initiatives and related infrastructure

reductions; and

• the use of international collaboration to acquire weapons in the most

cost-effective manner.

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

planning process allows for updating the plan and responding quickly to

Page 1 GAO/IAP-97-7 Defense Acquisitions Issues
Forward

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

Page 2 GAO/IAP-97-7 Defense Acquisitions Issues
Contents

Foreword 1

Table I: Key Issues 4

Table II: Planned

Major Work

8

Table III: GAO

Contacts

9

Page 3 GAO/IAP-97-7 Defense Acquisitions Issues
Table I: Key Issues

Issue Significance

Weapon and Space Systems Justification:

Are DOD and NASA selecting for

development only those systems and

modifications that are adequately justified?

Many of the military systems that are in planning or under development were designed to

counter a no longer existing Soviet threat. The notion of an all-out confrontation in Europe

has given way to concerns over regional instabilities. In light of these changes,

justifications for weapon systems must be revisited to determine whether the systems

support a new strategy focused on regional instabilities and to ensure that the

appropriate trade-offs 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 Acquisition:

Are DOD and NASA ensuring that systems

are being acquired in an efficient, effective,

and economical manner?

Despite the many attempts at acquisition reform, significant problems continue to occur.

Major commitments to systems are still made before adequate testing ensures that the

systems will meet critical performance requirements. Costs for 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 acquisition-related budgets reflect

current needs and should prior-year funds

be rescinded?

Over $150 billion was requested in fiscal years 1996 and 1997 for the acquisition of

military systems and support items. Analyzing planned budgetary expenditures is

necessary to identify those that are unnecessary and those that can and should be

delayed.

Page 4 GAO/IAP-97-7 Defense Acquisitions Issues
Table I: Key Issues

Objectives Focus of Work

• Determine whether the justifications for new and modified

systems are reasonable and logical and support the national

military strategy. 

• Determine whether DOD, the services, and NASA have

adequately considered meeting stated requirements through

alternative uses of or modifications to current systems.

• Assess whether accurate cost estimates, including estimates for

operation and support costs, are being developed and used to

determine which programs should be pursued and which systems

best meet requirements within limited budgets.

• Justifications of major systems such as F-22, V-22, and F/A-18

E/F; directed energy weapons; precision-guided munitions;

national and theater missile defense; the Navy’s new arsenal ship;

the new attack submarine; and DOD and NASA space systems. 

• Determine whether DOD, the services, and NASA have selected

the lowest risk and least costly acquisition strategies consistent with

the need for the planned system or modification.

• Determine whether selected acquisition strategies commit the

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.

• Acquisition of major systems such as B-2, F-22, Joint Primary

Aircraft Training System (JPATS), F-14, Comanche, F/A-18 E/F,

Joint Strike Fighter, DOD and NASA space systems, Crusader,

Navy systems to improve littoral warfare capability, and digitized

battlefield systems.

• Identify items in current budget requests that should be

considered for denial or reduction.

• Identify prior-year appropriations that could be rescinded.

• Reviews of the procurement and research, development, test,

and evaluation budget accounts for aircraft, C3I, ships, ground

and DOD space systems, missiles, munitions, ballistic missile

defense, defense agencies, and NASA systems.

Page 5 GAO/IAP-97-7 Defense Acquisitions Issues
Table I: Key Issues

Issue Significance

Acquisition Management:

Are DOD and NASA streamlining and

improving their acquisition processes,

practices, and infrastructure while ensuring

public funds are properly spent?

The Federal Acquisition Streamlining Act and the Federal Acquisition Reform Act require

GAO evaluations of several provisions’ implementation across the federal government. In

addition, DOD has underway numerous reengineering initiatives and pilot programs

designed to further acquisition reform and is expecting to see reductions in the

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.

International Collaboration and Defense

Trade:

How can DOD take advantage of the

international marketplace to safely acquire

weapons in the most cost-effective manner?

Tightening budget pressures and changes in DOD’s acquisition policies point to an

increased role for international collaboration in weapons acquisition through

co-development and production of major systems and buying and selling systems and

components. International competitive pressures, including foreign government defense

procurement policies, pose new challenges for U.S. companies and government

policymakers. U.S. government responses to this complex international environment will

be a major factor in safeguarding U.S. technological leadership and in influencing the

health of the U.S. defense industry.

Page 6 GAO/IAP-97-7 Defense Acquisitions Issues
Table I: Key Issues

Objectives Focus of Work

• Evaluate the implementation of governmentwide acquisition

reform legislation and the costs/benefits of new proposals.

• Identify best commercial acquisition practices that can be

incorporated into the DOD and NASA acquisition processes. 

• Determine whether the savings that have been estimated as a

result of acquisition reform and acquisition infrastructure reductions

are likely to materialize.

• Identify and report internal control weaknesses on individual

systems and in the acquisition process that result in fraudulent,

wasteful, or abusive practices in systems acquisitions.

• Acquisition reform initiatives, such as the use of off-the-shelf and

nondevelopmental technology, Federal Acquisition Streamlining

Act evaluations, electronic commerce systems, high-risk area

updates, use of task order contracts and research and

development contracts as “pass throughs,” evaluation of best

acquisition practices and acquisition infrastructure adjustments,

and the impact of defense industry restructuring.

• Assess DOD’s efforts to utilize opportunities for international

cooperation in the development and production of weapon systems.

• Examine changes in the international defense market and the U.S.

government response and determine their impact on the

competitiveness and capabilities of the U.S. defense industry and

on U.S. trade policies.

• Consolidation of the European defense sector, cost savings

realized by DOD from sales to non-DOD customers, recent

practices in offset arrangements, and the medium

extended-range air defense system (MEADS) co-development

program.

Page 7 GAO/IAP-97-7 Defense Acquisitions Issues
Table II: Planned Major Work

Issue Planned Major Job Starts

Weapon and space system

justifications

— Navy’s plans to develop an arsenal ship.

— Precision-guided munitions acquisition.

— Airborne laser boost phase intercept program.*

— Sea-Based Theater Ballistic Missile Defense.*

— Intratheater airlift requirements.*

— Aircraft investments.*

— Unmanned aerial vehicle requirements.

Weapon and space system

acquisitions

— B-2 cost and performance.*

— F-22 status.*

— F-14 modernization programs.*

— Joint Strike Fighter (JSF) progress.* 

— Joint Primary Aircraft Training System.*

— Comanche Helicopter Program.

— Joint direct attack munition.*

— DOD’s space plans, programs, and activities.

— Army’s Family of Medium Tactical Vehicles program.

— Space station development, operational planning, and management.

— Army’s development of the digitized battlefield.

— Navy’s New Attack Submarine.*

— Joint STARS.*

Budget analysis — DOD’s and NASA’s fiscal year 1998 RDT&E and procurement budget requests for weapon

and space systems and intelligence programs.*

Acquisition management — Savings from acquisition reform.*

— Potential savings from industry restructuring.

— DOD’s initiative to use commercial off-the-shelf and non-developmental item alternatives.

— Federal Acquisition Streamlining Act effectiveness.*

— DOD’s use of multiple award task and delivery order contracts.

— R&D contract pass throughs.*

— Technology insertion/Advanced Concept Technology Demonstrations.

— High-risk updates on defense and NASA.

— FACNET.*

International collaboration and

defense trade

— European defense consolidation.

— Practices in offset arrangements.

— Medium extended-range air defense system co-development program.

— Realizing unit cost savings from weapons exports.*

— U.S. benefits from international data exchange agreements.

*Ongoing assignments.

Page 8 GAO/IAP-97-7 Defense Acquisitions Issues
Table III: GAO Contacts

Director Louis J. Rodrigues (202) 512-4841

Associate Directors David E. Cooper

Katherine V. Schinasi

Thomas J. Schulz

Thomas J. Brew (Denver)

Allan Li

Assistant Directors Francis P. Degnan, Jr.

Thomas J. Denomme

Lee A. Edwards (Huntsville)

William R. Graveline (Huntsville)

Paul L. Francis

John K. Harper

Steven F. Kuhta

Robert D. Murphy (Dayton)

Richard J. Price

Charles F. Rey

James K. Spencer*

Clifton E. Spruill

Derek B. Stewart*

Robert J. Stolba

Kevin M. Tansey*

Charles W. Thompson

Homer H. Thomson

Charles A. Ward

Karen S. Zuckerstein

* Staff on detail

(806300) Page 9 GAO/IAP-97-7 Defense Acquisitions Issues
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