Defense Industrial Base: An Overview of an Emerging Issue
NSIAD-93-68
Published: Mar 29, 1993. Publicly Released: Apr 30, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed the: (1) existence of a viable U.S. industrial base to meet future defense needs; and (2) access to critical items and capabilities produced or controlled by foreign countries.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should develop a realistic strategy concerning the restructuring of the defense industrial base that recognizes the need to take action, whenever necessary, to ensure the existence of the critical technological and industrial capabilities needed to meet future defense requirements. | DOD has developed a realistic defense industrial base strategy that recognizes the need to take action to ensure the existence of critical technological and industrial capabilities to meet future defense requirements. DOD is establishing policy and criteria to identify and maintain such capabilities. Several action groups composed of high-level officials periodically brief service acquisition executives. The groups have prepared a handbook for use by the military services and DLA in: (1) determining the capabilities of industry to meet defense requirements; and (2) identifying circumstances under which DOD should take action to preserve essential capabilities. The handbook also sets... forth DOD's general philosophy and its planning framework for developing and sustaining industrial capabilities. Comments from industry and DOD officials on the draft handbook (dated July 1995) have been received and considered, and the final version of the handbook has been approved and sent to the printers.
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| Department of Defense | Because the Secretary of Defense remains accountable for the plan that was required by section 831(a) of the National Defense Authorization Act for fiscal years 1992 and 1993, the Secretary of Defense should consult with the Senate and House Committees on Armed Services to determine whether the plan is still needed in light of more recent legislative requirements. | DOD proposed legislation to revise certain statutory requirements for annual industrial base assessments and plans. According to DOD, the existing provisions of Chapter 148 of title 10, U.S. Code "require a huge commitment of resources in a downsized departmental budget," but if the legislative proposal is enacted, it would not increase DOD's budgetary requirements. Based on informal feedback, DOD officials believe its approach has been well-received and may be satisfactory. However, DOD has not addressed the reporting requirements of section 831(a) of the DOD Authorization Act for FY 1992-1993. DOD officials said that: (1) this omission was an oversight; (2) their intent was to address...
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Topics
Data collectionDefense capabilitiesDefense contingency planningDefense industryForeign corporationsIndustrial mobilizationInternational relationsInternational tradeStrategic materialsWeapons industryIraq War (1991)