Summary: GAO discussed the Department of Defense's (DOD) acquisition reforms, focusing on the DOD report on its actions to: (1) analyze existing procurement laws and regulations; (2) streamline its acquisition organization; (3) reduce excessive and duplicative audits; (4) develop an integrated financing plan; and (5) make greater use of commercial products. GAO found that: (1) although DOD listed 20 laws that made major changes to its procurement system, it provided no analysis, but concluded that the laws burdened both government industry, reduced its flexibility, and complicated the procurement system; (2) DOD proposed 12 specific legislative changes to simplify its procurement process, but did not indicate how the changes would improve procurement procedures or continue to meet their existing purpose; (3) although DOD established a streamlined organizational structure, it lacked decisionmaking authority and control over resources and did not substantially change program managers' lines of authority; (4) DOD actions for effective audits and oversight included raising the threshold for preaward audits to $500,000, defining DOD roles and responsibilities for reviewing contractors, not requesting price data when adequate price competition existed, and early cost reviews and coordination to preclude duplication; (5) DOD submitted its Five-Year Defense Program without the required financing plan because it lacked current and consistent contractor profit data; and (6) DOD had not established competitive procedures for buying commercial products.
