Summary: GAO identified five important issues facing the new administration and Congress in considering the nation's defense.
GAO found that the new administration will need to: (1) reduce defense costs by realigning planned defense, ensuring that requirements balance with funding availability, exercising restraint in replacing weapon systems, and assessing manpower and compensation systems; (2) maintain the readiness and sustainability of defense forces during reductions; (3) stabilize the acquisition process to help reduce fraud, waste, and abuse through adequate internal controls and sound management over defense contracts, increased professionalism in the procurement work force, and improved operational testing and evaluation of weapons systems; (4) improve peacetime inventory management to promote efficient and effective operations, support military missions, and protect inventories from fraud, waste, and abuse; and (5) ensure placement of a first-rate management team to effectively control the military establishment.
