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TOPAZ II Space Nuclear Power Program: Management, Funding, and Contracting Problems

OSI-98-3R Published: Dec 01, 1997. Publicly Released: Dec 19, 1997.
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Highlights

Pursuant to a congressional request, GAO investigated questionable management practices and possible wrongdoing in the TOPAZ II space nuclear power program, focusing on the program's management, funding, and acquisition practices from 1990 through 1995.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should ensure that the Ballistic Missile Defense Organization (BMDO) audits its fiscal year 1993 funds to determine if unobligated funds are available to cover the $5.9 million difference between $9.4 million (the contract's total price) and $3.5 million (the amount obligated and expended from fiscal year 1993 funds). If funds in that amount are not available, the Secretary should ensure that BMDO notifies the Office of Management and Budget and the Congress that it violated the Antideficiency Act.
Closed – Not Implemented
DOD disagrees with GAO's findings and recommendation in this matter, and declines to implement the recommendation. The DOD interpretation of the contract as research and development (versus acquisition) enables and allows incremental funding and, therefore, negates any argument of an Antideficiency Act violation. Regardless, Congress reduced funding and the program was terminated.

Full Report

Full Report (8 pages)

Office of Public Affairs

Topics

Government Operations
Defense conversionForeign military arms salesImproper award of contractInternational relationsNuclear proliferationNuclear reactorsSole source procurementTechnology transferUnobligated budget balancesMilitary forces