Defense Budget:

Potential Reductions to the Army and Navy Missile Programs

NSIAD-90-302BR: Published: Sep 27, 1990. Publicly Released: Sep 27, 1990.

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Pursuant to a congressional request, GAO reviewed three military services' fiscal year (FY) 1991 budget requests, focusing on: (1) the Army's justification for its $2.7-billion request for 13 missile systems; (2) the Marine Corps' $10.1-million request to procure missiles; (3) the Navy's $42.1-million request to procure missiles; and (4) whether unused funds could be rescinded.

GAO found that the services could potentially reduce $887.4 million of their FY 1991 budget requests for 6 missiles and rescind $326.8 million from FY 1990 appropriations for 3 missile systems, resulting primarily from: (1) deferral of requests for procurement funds to future years; (2) questionable requirements; (3) reduced requirements; (4) actual costs that were less than anticipated costs; and (5) recalculated amounts using more current information. GAO also found that the services could potentially reduce their procurement requests for two other missile systems under certain conditions.

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