Weapons Acquisition:

Implementation of the 1991 DOD Full Funding Policy

NSIAD-92-238: Published: Sep 24, 1992. Publicly Released: Sep 30, 1992.

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Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) implementation of a full funding policy for programs reviewed by the Defense Acquisition Board (DAB), focusing on all major DAB decisions under the policy to: (1) determine the policy's impact and effectiveness; (2) identify programs' shortfalls and how they were estimated; and (3) ascertain if shortfall offsets were identified, approved, and incorporated into the Future Years Defense Plan (FYDP).

GAO found that: (1) DOD has placed an increased emphasis on ensuring that funding shortfalls are remediated at the earliest possible point in the budget process; (2) DOD never implemented a formal mechanism to obtain early approval of outyear funding changes and regular FYDP updates reflecting agreements reached on DAB reviewed programs because DOD deemed it impractical; (3) as of June 1992, 3 of 16 programs had unresolved budget shortfalls; (4) DOD estimated shortfalls after considering program cost estimates which were based on management determinations and judgments; and (5) DOD identified and approved shortfall offsets over a period of time.

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