Full Potential To Achieve Savings by Investing in Fast Payback Productivity Enhancing Capital Equipment Not Realized

The Department of Defense's (DOD) fast payback productivity-enhancing capital-investment program was an attempt at: (1) improving the fairness with which relatively low-value productivity-enhancing equipment competes for public funds; and (2) eliminating the long approval leadtime associated with the annual budget review process. The program was begun in 1973 to take advantage of the relatively low-value investment opportunities that were being lost because no provisions were made to fund them as they occurred. Under the program, productivity-enhancing investments are separated from others for special consideration, and qualified investments are to be financed quickly. DOD officials have included $l3.5 million for the program in the 1979 budget request.