Weapons Acquisition: Better Use of Limited DOD Acquisition Funding Would Reduce Costs
NSIAD-97-23
Published: Feb 13, 1997. Publicly Released: Feb 13, 1997.
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Highlights
GAO reviewed the Department of Defense's (DOD) weapons acquisition procedures, focusing on: (1) DOD's practice of reducing the annual production of weapons below planned optimum rates during full-rate production; (2) the reasons for this practice; and (3) the effect of this practice on the costs and availability of weapons.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should revise DOD's weapon acquisition policies to require that: (1) annual quantities of weapons bought during low-rate initial production be limited to the minimum necessary to complete initial operational test and evaluation and prove the production line; and (2) rates and quantities not be increased during low-rate production to ease the transition into full-rate production unless DOD clearly establishes that the increase is critical to achieving efficient, realistic, and affordable full-production rates and can be accomplished without affecting the efficient production of proven systems. |
Closed – Implemented
Although DOD generally concurred with the intent of the final report, it believes that no further DOD actions are needed to address the recommendations. For example, DOD maintains that the latest revision to its acquisition policy documents deals very clearly with the suggestions contained in this recommendation.
|
| Department of Defense | The Secretary of Defense should direct the Under Secretary of Defense for Acquisition and Technology and the Under Secretary of Defense (Comptroller and Chief Financial Officer) to submit future budgets which place priority on funding the efficient production of weapons in full-rate production. |
Closed – Implemented
DOD concurred with the intent of this recommendation but stated that this strategy is and continues to be its acquisition policy. Despite the report's findings, DOD states that it makes every effort to fund full-rate production systems in an efficient manner.
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Topics
Weapons systemsBudget cutsConcurrencyDefense budgetsDefense capabilitiesDefense cost controlDefense procurementIrregular procurementProcurement planningTesting