Future Years Defense Program: Risks in Operation and Maintenance and Procurement Programs

This report summarizes GAO's findings on the Department of Defense's (DOD) Future Years Defense Program (FYDP). Although total funding in the 2001 FYDP is about $16 billion more than in the 2000 FYDP, DOD may not be able to implement its operation and maintenance and procurement programs as planned. GAO identified several areas in which costs may be understated or savings overstated, increasing the risk that in the next FYDP the military will have to shift more funds to these accounts from other accounts. DOD's efforts to reduce its infrastructure costs may not yield the savings that it planned to use to fund modernization and readiness needs. Because the military services and the defense organizations have already adjusted their current budgets and future years funding projects to reflect these expected savings, they will likely experience funding shortfalls unless other adjustments are made or additional ends are provided.