Comments on H.R. 5540

GAO stated its concerns regarding H.R. 5540, a proposed bill that would add a new section to the Defense Procurement Act of 1950. The original version of the proposed bill was reviewed because the amended version was not available. GAO suggested that subsection (b) be modified by: (1) deleting the language allowing the use of unobligated Department of Defense (DOD) balances and rescinded funds; (2) adding a specific dollar authorization for the annual gross level of each program; and (3) placing a time limit on the period of financial aid availability. In addition, GAO suggested that: (1) the criteria for industry and firm selection should be clarified to assure that firms selected for aid are clearly needed to support defense needs; (2) section 303A(i) should be rewritten to include a requirement for the President to establish standards against which requests for the provision of equipment can be judged; (3) subsection (d) should be deleted from the bill; (4) subsection (k) should include a provision giving GAO additional access to agency records; (5) subsection (k) requirements for monitoring, auditing, and annual reporting by the Comptroller General are unnecessary; and (6) the bill should provide for an evaluation of the development program by the Secretaries of Commerce and Defense.