Summary: The Defense Department's (DOD) draft general and flag officer requirements report asks for more new active and reserve component general and flag officer positions above their current authorizations. GAO has three concerns about DOD's draft report recommendations. First, actual requirements are unknown because the military services adjusted their recommendations on general and flag officer requirements without explanation. Second, 35 general and flag officer requirements were counted twice when the Office of the Secretary of Defense developed its draft consolidated recommendations. Third, the service studies did not fully consider the potential to convert military positions to civilian positions that may not be military-essential. If Congress provides the additional positions that DOD's draft calls for, the estimated cost increase would be about $1.2 million annually for compensation paid to the new general or flag officers and their assistants plus a relatively small amount for a one-time purchase of new office furniture and other items and another $713,000 annually for the 12 new general and flag officers provided to the Marine Corps in 1996.