Defense Budget: Potential Reductions to Missile Procurement Budgets

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Report Type	Reports and Testimonies
Report Date	Nov. 18, 1988
Report No.	NSIAD-89-17
Subject	Army procurement Budget cuts Military appropriations Military budgets Military cost control Military operations Missiles Army Tactical Missile System Chaparral Missile System HELLFIRE Missile Line-of-Sight Forward-Heavy Missile System MLRS Multiple Launch Rocket System Patriot Missile System Pedestal-Mounted Stinger Missile System Pershing Missile System Stinger Missile TOW-2 Missile

Summary:

Pursuant to a congressional request, GAO reviewed: (1) the Army's $2.1-billion fiscal year (FY) 1989 procurement budget request for 10 missile systems; (2) other portions of the FY 1989 missile budgets; and (3) selected aspects of previous missile budgets to identify potential reductions.

GAO identified $216.3 million in potential reductions from the budget requests for 8 of the 10 missile systems and for spares and repair parts, consisting of: (1) $95.5 million from the FY 1989 budget request; (2) $94.6 million from the FY 1988 budget; and (3) $26.2 million from the FY 1987 budget. GAO found that the reductions primarily resulted from: (1) recalculations using more current contract information and revised requirements and estimates; and (2) requests for procurement funds for FY 1989 that could be deferred to future years.

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Defense Budget: Potential Reductions to Missile Procurement Budgets