Summary: With considerable support from Congress, the Defense Department (DOD) has made acquisition reform one of its top priorities as it tries to reduce the cost of maintaining technological superiority in an era of tighter military budgets. Acquisition reform has generally focused on measures affecting DOD procurements. However, DOD is also investigating new approaches in its science and technology efforts, including using cooperative agreements and other transaction instruments to enter into research projects with commercial firms and consortia. DOD has cited the use of cooperative agreements and other transaction instruments as a way to (1) reduce barriers to integrating the defense and civilian sectors of the industrial base, (2) promote new relationships and practices within the defense industry, and (3) allow the government to leverage for defense purposes the private sectors' financial investments in research and development of commercial products and processes. This report discusses DOD's use of these instruments to further these three objectives. GAO also discusses issues concerning the selection and the structure of the instruments.
