U.S.-Israel Arrow/Aces Program: Cost, Technical, Proliferation, and Management Concerns

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Report Type	Reports and Testimonies
Report Date	Aug. 23, 1993
Report No.	NSIAD-93-254
Subject	Contract oversight Cost effectiveness analysis Foreign license agreements Foreign military sales Military coproduction agreements Military systems analysis Nuclear proliferation Technology transfer Arrow Anti-Tactical Ballistic Missile Program Israel Patriot PAC-2 Patriot PAC-3 SDI SDI Arrow Continuation Experiments SDI Extended Range Interceptor SDI Theater High Altitude Area Defense System Strategic Defense Initiative Program Ballistic missile defenses

Summary:

The Pentagon lacks valid baseline information needed to assess the Arrow missile defense system's cost, schedule, and technical performance. Even though the Defense Department has no plans to buy the Arrow, such an analysis is needed to determine whether the Arrow is the most cost-effective U.S. alternative and the best choice for meeting Israel's needs. In addition, the United States could be drawn into funding most of the costs of the complete Israeli Arrow missile defense system in response to incremental Israeli government requests. The U.S. government has exercised inadequate control of the technology and funds it has supplied to the Arrow missile program. No U.S. agency has monitored or verified Israel's compliance with provisions of the Arrow licensing agreements. Moreover, no U.S. agency has comprehensive information on U.S. items and technology exported to the program to allow adequate U.S. oversight and help deter and detect unauthorized uses and transfers.

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U.S.-Israel Arrow/Aces Program: Cost, Technical, Proliferation, and Management Concerns