DOD Budget: Substantial Risks in Weapons Modernization Plans

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Report Type	Reports and Testimonies
Report Date	Oct. 8, 1998
Report No.	T-NSIAD-99-20
Subject	Defense cost control Defense economic analysis Defense procurement Financial management Future budget projections Military downsizing Procurement policy Defense Health Program DOD Chemical Demilitarization Program DOD Future Years Defense Program DOD Quadrennial Defense Review FYDP START Strategic Arms Reduction Treaty Weapons systems Defense budgets

Summary:

Despite reductions in military and civilian personnel, force structure, and facilities in recent years, the Defense Department (DOD) has been unable to follow through with planned funding increases for weapons modernization. This has occurred, in part, because DOD has not shifted funds from infrastructure to modernization. DOD has adjusted the 1999 Future Years Defense Program to decrease the risk that funds would migrate from procurement to unplanned operating expenses. However, the 1999-2003 program, like previous programs, is based on optimistic assumptions about savings and procurement plans. Optimistic planning assumptions lead to far too many programs for the available dollars. They also provide an unclear picture of defense priorities because tough decisions and trade-offs are avoided. In order for DOD to have an efficient and effective program and for Congress to properly exercise its oversight responsibilities, it is critical that DOD present realistic assumptions and plans in its future budgets.

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DOD Budget: Substantial Risks in Weapons Modernization Plans