The ManTech Program is designed to enable DOD to develop advanced technologies to use in manufacturing weapon systems. Such technologies, in turn, should reduce weapon system costs and improve quality. ManTech projects address development of technology in areas such as metals, composite materials, electronics, munitions, as well as technology to sustain weapons systems. The users of the ManTech Program are service and DLA managers responsible for the development of new weapons systems and for the repair, maintenance and overhaul of fielded systems. However, the projects are executed through agreements or contracts with several types of organizations including defense contractors, government facilities, suppliers, consortia, centers of excellence, academia, and research institutes. The military services and DLA execute the ManTech Program under the general direction of the Director, Defense Research and Engineering, Office of the Deputy Under Secretary of Defense (Science & Technology), Office of Technology Transition. Each component has established a ManTech office within its organization to set policies and procedures for operating its ManTech program and determining which projects to fund. DOD established the Joint Defense Manufacturing Technology Panel, staffed by service and DLA ManTech office personnel, to set program objectives, promote effective integration and program management, conduct joint planning, and oversee program execution. It reports to and receives taskings from the Director of Defense Research & Engineering on manufacturing technology issues of multiservice concern and application. The panel organized the program into subpanels to serve as focal points for specific technology areas. ManTech Program appropriations have fluctuated significantly over the past several years, and annually since fiscal year 1991, the Congress has appropriated more funds to the program than the services requested in the Presidents’ budgets. The funding trends for the program since fiscal year 1991 are shown in figure 1. In addition, funding by DOD component has also fluctuated. Figure 2 shows the funding for the services from fiscal years 1997 to 2001. Users in the military services and DLA look to the ManTech Program to help meet certain needs related to weapons systems they are responsible for, such as developing technologies, products and processes that will reduce the total cost and improve the manufacturing quality of their systems. Users reported to us that the ManTech projects we selected in our analysis were generally addressing their needs. In addition, the military services and DLA have processes in place that include users in the project identification and selection process. Such processes increase the likelihood that projects will meet user needs. However, the extent to which some needs are being met is limited by factors related to each program, such as the amount of funding available. During fiscal years 1999 and 2000, DOD had a total of 234 active ManTech projects valued at about $372 million. From that list, we selected 52 projects in the DOD components valued at $206 million and discussed with users whether those projects were responding to their needs. These users told us that the ManTech Program is generally meeting their needs. The projects we selected resulted in improvements ranging from a project that developed new technology to reduce the time and cost required to produce submarine and surface ship propellers; to a project that increased the reliability of electrical circuits used in missile systems by protecting them against dirt and moisture; to a project that enabled the Air Force to replace 83 parts in its F-119 engine with one part and reduce the weight of the engine by 54 pounds. By implementing such projects, officials from the military services and DLA told us that they were able to save tens of millions of dollars. Table 1 provides detailed examples of projects that users reported to us met their needs. Congress has consistently provided more funding for DOD’s ManTech Program than requested in the President’s budget. For example, in fiscal years 2000 and 2001, the Army received an additional $66.5 million in ManTech funds, of which $45.5 million or nearly 70 percent was designated for the Army’s ManTech munitions efforts. These efforts included such projects as developing a more cost-effective and safer manufacturing process for an advanced explosive compound. The Congress believed such efforts were not receiving sufficient funds in the past. The extent to which the ManTech Program meets users needs is due partly to the process by which projects are identified and selected for funding. Furthermore, the statute requires the participation of the prospective technology users in establishing requirements for advanced manufacturing technology. The services and DLA have different planning cycles and criteria for project selection. However, they all have processes that include users in the identification and selection of projects. The processes generally include steps to determine and consolidate users’ needs, select the projects to be funded, and perform the work. The following figure depicts the generic ManTech project and identification and selection process. We found that the number of projects selected for inclusion in the ManTech Program differs from the number proposed because of funding limitations. Most of the funding each year is allocated to projects already underway that require multi-year funding. Only a few proposed projects are selected as new starts. Table 2 shows the number of projects proposed and selected for fiscal year 2001. Even though the services and DLA employ different types of selection mechanisms and criteria, they all include users in this process. For example, the Army and the Navy annually solicit ideas for projects from the major subordinate commands where weapons systems are managed. The Air Force encourages users to submit ideas for projects on a continuing basis. All three services require that before a project can be considered for funding, prospective users of the technology endorse the projects. DLA relies on regular dialog with its supply service centers to raise issues related to manufacturing technology for the programs for which it is responsible. Table 3 further details how the services and DLA identify, select, and fund their projects. Some factors limit the extent to which the services and DLA can respond to certain needs. Those limitations include canceling some projects that have not yet been started, terminating projects already underway, or postponing projects already approved for funding because of insufficient funding. For example, the Navy conducts its program through a network of Centers of Excellence and allocates program funding based on what each center received in the past. This strategy helps all of the centers remain viable through the life of their contracts, but demands for projects at a particular center in any given year may be greater than funding at that center. This outcome may result in some projects not being funded, and therefore some users’ most urgent ManTech needs may not be met. For example, for fiscal year 2001, two lower priority Naval Sea Systems Command projects were selected for funding because the command’s higher priority projects were for Centers of Excellence with insufficient funds to meet all demands. Also, several Army and one ManTech official in the Office of the Under Secretary of Defense whom we talked to expressed concern about the Army’s requirement for a program manager cost share on certain projects and a validated cost analysis on all projects. Two of the officials believed that there were projects that would benefit Army weapons systems but would not be selected for funding because (1) it was not possible to obtain a program manager cost share, or (2) a validated cost analysis could not be done for projects with environmental, health, or safety benefits. According to the officials, these projects would help meet user needs by reducing the total cost of ownership or improving the quality of weapons systems. However, our review of a number of Army projects did not reveal any that fell into these categories. Another Army ManTech official and an official from the Office of the Under Secretary of Defense believed that validated cost analyses served a useful purpose in weeding out projects without measurable financial benefits. One official expressed concern about the extent to which the Army relies on validated cost analyses to select projects for funding. The other official did not think the cost analysis was the best or only way to screen projects. However, neither official had alternative suggestions. Additionally, Air Force ManTech officials expressed concern that users’ future needs may not be met to the same extent as they have been in recent years. This is because the Air Force Materiel Command may have to absorb a budget shortfall of $100 million in science and technology funding, which includes the ManTech program. As a result, the Materiel Command proposes reducing the Air Force ManTech Program by more than a quarter over the next 5 years between fiscal years 2003 and 2007 or $77.6 million in total. According to ManTech managers, the Air Force may have to terminate some on-going projects and/or cancel planned projects to address the funding shortfall. For the most part, the services and DLA awarded work performed under the ManTech Program using competitive procedures. Of the 36 contracting actions we reviewed, 10 were awarded without competition. In each case, there was a documented justification to award the work on a sole source basis. Table 4 further illustrates the extent to which the services and DLA award their projects competitively and details the rationale for specific sole source awards. DOD is not managing the ManTech Program as efficiently and effectively as possible. Specifically, it is not conducting as many joint projects as it could and therefore is missing opportunities to leverage the limited funding available for ManTech projects. Additionally, DOD does not effectively measure the program’s success. Joint projects are those that are jointly funded; have planned implementation benefiting more than one component; or are managed with joint decision-making. These projects allow the services and DLA to leverage their programs by sharing the financial and managerial burdens for projects that can benefit more than one defense component. This is especially important given the limited ManTech budget and the small number of new projects each year that are approved for funding. For example, one currently funded joint project is expected to achieve affordability goals for forged components used on fighter aircraft. The project is expected to benefit the Joint Strike Fighter, the Navy’s F/A-18, and the Air Force’s F-22. The Navy’s National Center for Excellence in Metalworking Technology is managing this project and both the Navy and the Air Force are providing ManTech funds.