Defense Budget:

Potential Reductions to DOD's Fiscal Year 1988 Ammunition Budget

NSIAD-88-29: Published: Oct 27, 1987. Publicly Released: Oct 27, 1987.

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In response to a congressional request, GAO reviewed the military services' fiscal year (FY) 1988 budget requests for ammunition items and the Army's request for ammunition production base support.

GAO noted that the budget request totalled $3.6 billion for ammunition items and $168.5 million for ammunition production facilities. GAO believes that the Army adequately justified its request for the ammunition production base; however, GAO estimated that the services inadequately justified $577.6 million of the $3.6 billion request for ammunition items. GAO found that the Army overstated its request by $320.9 million because: (1) eight developmental items will not be ready for procurement; (2) two items have overly optimistic production schedules; (3) four items have unresolved component problems; (4) two items have excessively long procurement lead times; (5) it will not need the total program quantity for two items in FY 1988; and (6) four items have larger quantities than needed. GAO found that the Navy overstated its $566.3 million for ammunition by $63.1 million due to: (1) production problems for three items; (2) prematurely programmed procurements; (3) overstated unit costs; (4) a possible replacement with lower cost, alternative components; and (5) items that exceed inventory requirements. GAO found that the Air Force overstated its $643.4 million request for ammunition by $189.1 million because: (1) it will not require certain item quantities to meet 1988 delivery schedules; and (2) lead times are excessive. GAO also found that the Marine Corps overstated its $410.9 million request for ammunition by $4.5 million because a new fuze will not be ready in time for procurement in FY 1988.

Matters for Congressional Consideration

  1. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Army's FY 1988 ammunition budget request by $198.6 million for 19 ammunition items.

    Matter: The Senate and House Committees on Appropriations should reduce the Army's ammunition appropriation request by $320.9 million for 22 items.

  2. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Army's FY 1988 ammunition budget request by $198.6 million for 19 ammunition items.

    Matter: The Senate and House Committees on Appropriations should reduce the Army's ammunition appropriation request by $320.9 million for 22 items.

  3. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Navy's FY 1988 ammunition budget request by $55 million for eight ammunition items.

    Matter: The Senate and House Committees on Appropriations should reduce the Navy's ammunition appropriation request by $63.1 million for 11 items.

  4. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Navy's FY 1988 ammunition budget request by $55 million for eight ammunition items.

    Matter: The Senate and House Committees on Appropriations should reduce the Navy's ammunition appropriation request by $63.1 million for 11 items.

  5. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Air Force's FY 1988 ammunition budget request by $27.5 million for four ammunition items.

    Matter: The Senate and House Committees on Appropriations should reduce the Air Force's ammunition appropriation request by $189.1 million for five items.

  6. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Air Force's FY 1988 ammunition budget request by $27.5 million for four ammunition items.

    Matter: The Senate and House Committees on Appropriations should reduce the Air Force's ammunition appropriation request by $189.1 million for five items.

  7. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Marine Corps' FY 1988 ammunition budget request by the recommended $4.5 million for one item.

    Matter: The Senate and House Committees on Appropriations should reduce the Marine Corp's ammunition appropriation request by $4.5 million for 1 item.

  8. Status: Closed - Implemented

    Comments: The Senate and House Committees on Appropriations reduced the Marine Corps' FY 1988 ammunition budget by the recommended $4.5 million for one item.

    Matter: The Senate and House Committees on Appropriations should reduce the Marine Corp's ammunition appropriation request by $4.5 million for 1 item.

 

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