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Acquisition Reform: Effect on Weapon System Funding

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Report Type Reports and Testimonies
Report Date Oct. 29, 1997
Report No. NSIAD-98-31
Subject
Summary:

Although it continues to support the Defense Department's (DOD) efforts to reform its acquisition processes, GAO raises concerns about the extent to which cost reductions from acquisition reform that the military has reported will be available to fund DOD's modernization program in the near term. Of the $29 billion in estimated cost reductions reported by the military, GAO found that only $7.2 billion, or 25 percent of the reductions, are expected to occur between 1995 and 2002. Most of the remaining $21.8 billion reported by the military are reductions that either occurred before 1995 or are expected to occur after fiscal year 2002. A large portion of the $7.2 billion has been used to meet needs within the program generating the reduction. GAO also found that acquisition reform savings may be offset by cost increases elsewhere in the programs. Consequently, few funds will be available for other DOD acquisition programs.

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