Defense Acquisition Organizations: Linking Workforce Reductions with Better Program Outcomes

Published by the Government Accountability Office on 1997-04-08.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                          United States General Accounting Office

GAO                       Testimony
                          Before the Subcommittees on Military Procurement and
                          Military Readiness, Committee on National Security,
                          House of Representatives

For Release on Delivery
Expected at
10:00 a.m., EDT
                          DEFENSE ACQUISITION
April 8, 1997             ORGANIZATIONS

                          Linking Workforce
                          Reductions With Better
                          Program Outcomes
                          Statement of Louis J. Rodrigues, Director, Defense
                          Acquisitions Issues, National Security and International
                          Affairs Division

             Mr. Chairmen and Members of the Subcommittees:

             I am pleased to be here today to discuss issues associated with the
             acquisition workforce and acquisition process of the Department of
             Defense (DOD).

             As you know, Mr. Chairmen, we have reported many times on cost growth
             and other problems on individual weapon systems; systemic problems,
             such as the mismatch between planned programs and available funding;
             and the underlying reasons for these problems. I believe that in
             contemplating changes to the acquisition workforce, there is an
             opportunity to improve the acquisition process and the results it produces.
             It does not appear to us that DOD has taken that opportunity. It is not an
             easy task but we believe that it is the right approach.

             Reducing infrastructure is one approach DOD is pursuing to increase funds
             for modernization. As an element of that infrastructure, the defense
             acquisition workforce is a logical place to look for efficiencies and
             savings. This morning I will talk about the reasons why this will be a
             complex and challenging undertaking. I see these reasons as threefold:

             First, there is no agreed-upon definition of what constitutes the acquisition
             workforce. This makes targeting changes and measuring their progress
             very difficult. Second, the workforce cuts made to date have not resulted
             in expected savings and have kept the basic organizational structure
             relatively intact. Third, decisions to restructure or reduce the acquisition
             workforce should be linked to getting better outcomes from the
             acquisition process. Cutting personnel levels without changing how
             acquisition organizations generate weapon system requirements and
             estimates will miss an opportunity to address the deep-seated causes of
             acquisition problems.

             I will elaborate on these points in my statement today and will offer some
             preliminary observations on DOD ’s plan to reduce and restructure its
             acquisition workforce submitted in January in response to legislation.
             Before turning to these issues, I would like to provide a general
             description of the current climate for change.

             As you know, budgets available for defense modernization over the last
Background   several years have been declining. In response, there has been a significant
             restructuring of the defense industry. Lockheed and Martin Marietta, the

             Page 1                                                     GAO/T-NSIAD-97-140
              Northrop and Grumman Corporations, Hughes Aircraft Company and
              General Dynamics Corporation’s Missile Operations, to name a few, have
              merged in the face of reduced defense spending now and for the
              foreseeable future. Those companies and others have determined that
              their health and profitability required more efficient structures, less
              overhead, and fewer employees. So too has DOD. Yet within DOD itself,
              which is operating in the same environment of declining resources but
              without the same business imperatives, no such restructuring of the
              acquisition community of this magnitude has occurred.

              The demand within DOD for available dollars is growing. DOD has said that
              funds needed for weapons modernization will come, in part, from
              acquisition reform initiatives and infrastructure reductions. However, the
              significant level of savings has not yet materialized. It is clear there is a
              significant mismatch between desired program funding and funds
              available that should not be perpetuated.

              A sound, agreed-upon definition of what constitutes the workforce is
What Is the   important for two reasons. It helps set the stage for identifying those
Acquisition   individuals and organizations involved in the acquisition process and it is
Workforce?    critical in establishing whether and to what extent DOD is making cuts.
              When measuring cuts on a percentage basis, which DOD has been
              mandated to do, the larger the baseline, the larger the cuts for any given

              The smallest universe I am aware of that defines DOD’s acquisition
              workforce is the 46,500 people DOD includes in its estimate of personnel
              associated with infrastructure. A second definition is those individuals
              covered by the Defense Acquisition Workforce Improvement Act (DAWIA)
              of 1990. The DAWIA work force in fiscal year 1994 was about 114,000. About
              98,000 of these were civilians.

              A third definition is based on the DOD instruction that defines an
              acquisition organization as one whose mission includes planning,
              managing, and/or executing acquisition programs that are governed by the
              DOD 5000 series of regulations. In our November 1995 report,1 we pointed
              out that the workforce associated with those organizations in 1994 was
              about 464,000, of which about 398,000 were civilians.

               Defense Acquisition Organizations: Changes in Cost and Size of Civilian Workforce
              (GAO/NSIAD-96-46, Nov. 13, 1995).

              Page 2                                                                       GAO/T-NSIAD-97-140
                        In its plan on workforce downsizing recently submitted in response to
                        section 906 of the Fiscal Year 1996 Defense Authorization Act, DOD used a
                        fourth definition. This definition includes acquisition organizations, minus
                        depot trade skill personnel.

                        DOD states that its workforce in the first quarter of fiscal year 1997 was
                        comprised of about 382,420 military and civilian personnel, using the same
                        definition we used in our 1995 report. DOD has stated its intention to
                        develop another definition of the acquisition workforce. If in doing so,
                        however, the baseline changes, it may be necessary to calculate future
                        cuts differently.

                        Finally, I should point out that these definitions may not include all of the
                        organizations within the services that establish requirements to start new
                        programs—groups with a significant impact on the acquisition process. We
                        do not know how many additional people this would entail.

                        In our November 1995 report on selected aspects of DOD’s acquisition
Managing the            workforce, we compared civilian acquisition workforce levels with
Acquisition Workforce   procurement budget funding. Figure 1 provides an update of that

                        Page 3                                                     GAO/T-NSIAD-97-140
Figure 1: Comparison of Civilian
Workforce in Acquisition              600
Organizations to Procurement Budget



                                                                                                                         Sec. 906

                                            80        83          86               89                 92            95       98        01
                                                                                        Fiscal year

                                                                            Procurement        Civilian workforce
                                                                          (dollars in billions) (in thousands)

                                      Source: GAO analysis of DOD data.

                                      As you can see, the number of individuals involved first increased and then
                                      decreased during the period from 1980 to 1994, roughly tracking DOD’s
                                      budgets during that period. In 1994, a year that roughly matched DOD’s
                                      budget level in 1980, DOD’s civilian acquisition workforce was 12 percent
                                      smaller. Since 1994, DOD has continued to reduce its civilian workforce. At
                                      the time of our 1995 review, DOD officials stated that it would be possible
                                      to again see increases in the acquisition workforce with any increases in
                                      the defense procurement budget.

                                      In our 1995 report, we found that the personnel reductions did not result
                                      in a commensurate decline in civilian payroll cost. The average annual
                                      payroll costs for civilians in acquisition organizations was about
                                      $20 billion in 1980 and in 1994, measured in 1996 constant dollars. The
                                      higher per capita costs were due to several factors. There was a significant
                                      decline in blue collar workers and an increase in white collar employees.

                                      Page 4                                                                             GAO/T-NSIAD-97-140
                       In addition, DOD officials stated that civilian payroll costs increased
                       because of the advent of locality pay and changes in grade structure.

                       We also looked more closely at two occupational categories in DOD’s
                       acquisition workforce—engineers and computer specialists. These groups
                       increased from 1980 until 1990 and then decreased from 1990 until 1994.
                       During the period of decrease, we found that contracts for these services
                       were increasing. To the extent that DOD was contracting out for services its
                       own personnel formerly provided—in essence, outsourcing—savings from
                       reducing those positions would be offset. In general, our work on
                       outsourcing shows that there is reason for caution about whether the
                       magnitude of hoped for savings can be achieved.

                       Finally, despite the declines in both the defense procurement budgets and
                       the civilian workforce since 1990, the number of acquisition organizations
                       remains relatively constant. Each acquisition organization maintains
                       similar occupational fields in common areas such as personnel, budgeting,
                       computing specialists, and contracting. Many other duties performed in
                       these occupations are not unique to an acquisition organization’s mission.
                       As a result, there may be significant opportunities to improve efficiencies
                       in these areas.

                       In one sense, the consistency in DOD’s acquisition structure may reflect the
                       incentives underlying the process by which DOD acquires systems. Despite
                       the many reform initiatives adopted by DOD over the last several years,
                       many of which represent improvements, the basic incentives in weapons
                       acquisition to downplay risk and present optimistic assessments of cost,
                       schedule, and performance still exist. Putting in place incentives and
                       performance indices that drive DOD acquisitions to be more efficient and
                       effective, in other words, to change the culture, should go hand in hand
                       with a more efficient structure that can operate successfully with a
                       reduced force and, perhaps, result in better outcomes.

                       Let me turn now to those outcomes.

                       DOD’s acquisition process has provided the United States with military
The Need for Better    weapons that no other country is in a position to challenge. Yet, despite a
Acquisition Outcomes   number of initiatives to improve the process, the acquisition of these
                       weapons has been and, in many cases continues to be, fraught with
                       significant problems. Weapon systems cost more and take longer to field
                       than expected, encounter performance problems, and are often difficult to

                       Page 5                                                     GAO/T-NSIAD-97-140
                            produce or support. Stretching out production of proven systems to fund
                            new starts or going into production with unproven systems are conscious
                            decisions that contribute to these problems. These outcomes put
                            significant pressure on the efficient use of resources. Thus, the goal of
                            improving acquisition outcomes is perhaps more important today than
                            ever. Understanding the factors that drive those outcomes is critical in
                            working toward this goal.

Acquisition Outcomes Are    At the aggregate level, a systemic problem with weapon acquisitions has
Accompanied by Persistent   been described as “too many programs chasing too few dollars”. We first
Problems                    reported on this issue in 1984. At that time, our analysis showed that from
                            1963 to 1983, the Congress provided an average of 32 percent more in
                            appropriations for weapons than projected in DOD plans, even though the
                            numbers of weapons DOD procured were less than anticipated. In the late
                            1980s, we estimated the mismatch between DOD’s program estimates and
                            estimated appropriations to be $553 billion over a 5-year period. In 1995,
                            we estimated this mismatch could exceed $150 billion over a 5-year
                            period. It is still a problem today, as evidenced by repeated delays in DOD’s
                            projected buildup of procurement funding, illustrated in figure 2.

                            Page 6                                                     GAO/T-NSIAD-97-140
Figure 2: Planned DOD Procurement
Programs Since 1995
                                    Dollars in billions







                                     1995                 1996   1997             1998                 1999     2000        2001
                                                                               Fiscal year

                                                                       1995 FYDP 1996 FYDP 1997 FYDP

                                    Source: DOD Future Years Defense Program data.

                                    To illustrate, assume that a weapon system was approved to begin low
                                    rate production in fiscal year 1995 on the basis that the projected funding
                                    increases would support full rate production in fiscal year 1998. As you
                                    can see, as fiscal year 1998 approached, the projected funding increases
                                    did not materialize. Consequently, the program started in fiscal year 1995
                                    would have to continue in low rate production, along with other programs,
                                    to fit within available funding for fiscal year 1998.

                                    Despite the chronic nature of this funding mismatch, DOD continues to
                                    (1) generate and support acquisitions of new weapon systems that will not
                                    satisfy the most critical requirements at minimal cost and (2) plan on the
                                    availability of more procurement funds than can be reasonably expected
                                    to be in future budgets. For example, we have reported that DOD is
                                    proceeding with major investments to improve air power capabilities

                                    Page 7                                                                    GAO/T-NSIAD-97-140
    without clear evidence that all of the programs are justified.2 Some of
    these programs will add only marginally to already formidable capabilities;
    in some cases viable, less costly alternatives exist. As a case in point, we
    have reported that the Navy’s F/A-18E/F program will result in an aircraft
    whose operational capabilities will only be marginally improved over that
    of the F/A-18C/D model.3 Yet, the C/D model would cost almost $17 billion
    less (in fiscal year 1996 dollars) in recurring flyaway costs for the purchase
    of 660 aircraft.4

    DOD’s force modernization plans are based on several assumptions that we
    believe are unlikely to materialize fully. These assumptions include:

•   Procurement funding levels will rise to $60.1 billion in fiscal year
    2001—over 40 percent higher than the fiscal year 1997 procurement
•   Significant savings will result from base closures, other infrastructure
    reductions, and outsourcing many support activities.
•   Significant savings will result from reforming the defense acquisition

    On individual acquisition programs, familiar problems still add billions of
    dollars to defense acquisition costs. Problems persist regarding
    (1) questionable requirements and solutions that are not the most
    cost-effective available; (2) unrealistic cost, schedule, and performance
    estimates; (3) questionable program affordability; and (4) the use of
    high-risk acquisition strategies. Over the years, we have observed that,
    while a small number of systems reach the field as unqualified successes
    and a small number are canceled, most weapons reach the field but cost
    more, take longer, and are often harder to support than expected.
    Generally, they represent a significant improvement over those weapons
    they replace, but it is not uncommon for them to have performance
    shortfalls or to require expensive, time-consuming modifications to
    achieve the required performance. These outcomes are impervious to
    different reforms, contract types, contractors, acquisition strategies,
    weapon types, critics, military services, administrations, and Congresses.5

     Combat Air Power: Joint Mission Assessments Needed Before Making Program and Budget Decisions
    (GAO/NSIAD-96-177, Sept. 20, 1996).
     Navy Aviation: F/A-18E/F Will Provide Marginal Operational Improvement at High Cost
    (GAO/NSIAD-96-98, June 18, 1996).
     Recurring flyaway costs include costs related to the production of the basic aircraft and do not
    include all procurement costs.
     Weapons Acquisition: A Rare Opportunity for Lasting Change (GAO/NSIAD-93-15, Dec. 31, 1992).
    Page 8                                                                          GAO/T-NSIAD-97-140
                     To the extent these problems increase the costs of individual programs,
                     they exacerbate the aggregate funding mismatch that already exists. DOD
                     usually resolves these funding mismatches—whether stemming from
                     across-the-board cuts in defense spending, the unanticipated start of a new
                     program, or cost growth—by stretching and reshuffling programs to fit
                     new funding levels. For example, we have recently reported that DOD has
                     inappropriately placed a high priority on buying large numbers of untested
                     weapons during low-rate initial production to ensure commitment to new
                     programs and thus has had to cut by more than half its planned full-rate
                     production for many weapons that have already been tested.6 The costs for
                     17 of 22 full-rate production systems we reviewed increased by $10 billion
                     beyond original estimates due to stretching out the completion of the
                     weapons’ production.

Outcomes Are the     While occurrences such as performance shortfalls, schedule delays, and
Consequences of an   cost increases are frequently cited as the major problems in weapon
Underlying Culture   acquisitions, we believe that they are largely the consequences of a
                     prevailing culture. This culture can be defined as the collective behavior of
                     the various participants in the acquisition process and the forces that
                     motivate their behavior. In fact, the process may be more realistically
                     portrayed as the interaction of its participants than the methodological
                     procedure depicted on paper. This culture has evolved as the acquisition
                     process has become a vehicle for meeting the diverse needs of its

                     While participants may see their individual needs as aligned with the
                     national interest, collectively, these needs create incentives for pushing
                     programs and encouraging undue optimism, parochialism, and other
                     compromises of good judgment. Under these circumstances, the inevitable
                     performance problems, cost growth, schedule slippage, and difficulties
                     with field support cannot be written off as mainly the result of errors or
                     lack of expertise. Rather, these problems have been the undesirable, but
                     apparently acceptable, consequences of the process. They persist not
                     because they are overlooked or underregulated, but because they enable
                     more programs to survive and thus more needs to be met. Over time, the
                     threat and the ability of weapon programs to help participants achieve
                     their own goals have institutionalized a culture that prefers continuing a
                     program over terminating it and hinders making difficult trade-offs to
                     alleviate cost, affordability, duplication, risk, and logistic supportability

                      Weapons Acquisition: Better Use of Limited DOD Acquisition Funding Would Reduce Costs
                     (GAO/NSIAD-97-23, Feb. 13, 1997).

                     Page 9                                                                   GAO/T-NSIAD-97-140
concerns. Collectively, these needs shape the cultural problem, for they
cannot be easily met without an ample supply of programs.

The traditional difficulty the acquisition process has had in dealing
squarely with affordability limitations is a case in point. In a collective
process that favors compromise, decisionmakers have preferred to find
ways to afford individual programs rather than making difficult decisions
between programs that would result in not starting or terminating some.
The result has been to sustain more programs at lower funding levels
rather than to fully fund fewer programs. Program sponsors are motivated
to make optimistic cost assumptions and to reduce quantities, program
scope, or prolong the schedule to avoid cancellation. Although these
actions do not solve the long-term affordability problem, they lessen the
need for decision-makers to make difficult choices among programs.
Collectively, they provide insights as to why the production rates of
mature programs are lowered to make room for new production of
immature weapons.

The seeds of weapon system problems can often be traced to the very
beginning of the acquisition process. In addressing mission needs, service
organizations propose programs that perpetuate their existence and
oversell the programs to ensure their survival. Predictably, programs begin
as parochial solutions embodying highly optimistic estimates. If the
proposing organizations were to act more objectively, they could doom
their own programs and jeopardize their own existence. The decisions
made in justifying a program are crucial because they largely determine
the eventual performance, schedule, and cost of the weapon system. An
approved requirement embodies how a weapon is to perform its mission
and often the specific technical characteristics it is to possess, thereby
setting the tone for the remainder of the acquisition.

The parochialism endemic to the services’ structures for developing
weapon system requirements tends to narrow consideration of
alternatives. The convergence of parochial preferences and the demand
for high performance in justifying weapons creates incentives for
developing requirements that embody a preferred solution against which
alternatives can hardly compete. The result is not necessarily that the best
solution to a valid need is selected, but that the preferred solution is
successfully justified.

The organizations responsible for developing requirements for new
weapons generally represent individual communities, such as infantry,

Page 10                                                   GAO/T-NSIAD-97-140
within the services that analyze their own mission area deficiencies and
recommend solutions from within their communities. These organizations,
over time, have institutionalized an advocacy for the weapons under their
purview and help perpetuate the funneling of successor weapons into the
acquisition process. Under this system for developing requirements,
programs are justified on their unique characteristics under the protection
of closely-guarded missions, making it difficult to broadly assess which
alternative best serves the general defense. Narrow reviews of missions
and requirements, together with each service’s reluctance to compromise
in design or performance goals for weapon systems, have contributed to
the services’ large investment in service-unique weapons that perform
similar missions.

As a program proceeds through development, the disposition for sponsors
to present program information optimistically and to protect the program
against disruption intensifies. This behavior is necessary to overcome the
numerous challenges a program faces as it competes for more funds. At
the same time, program support grows because more acquisition
participants have become active sponsors and because the money spent
has built a compelling argument for continuing the program. Together,
these factors complement the initial efforts to push the program and begin
to pull it through the acquisition process. They enable the program to
develop “a life of its own” and to become its own objective. Thus, even
when the very underpinnings of a program are badly shaken, strong
arguments are made by participants at all levels to continue the program
as planned. This is particularly true for programs that have entered the
engineering and manufacturing development phase, by which time it is
generally conceded that they are committed to production. Ironically, if a
weapon has serious problems, they are most likely to surface during this
phase—when the program has become virtually unstoppable.

The foregoing does not stem from a pejorative view of individual
participants or organizations. Rather, they do what they believe is right
given the pressures they face. The difficulty lies in the fact that there is no
consensus on what is right. In the absence of such a consensus, the
acquisition process serves to satisfy the diverse needs of its participants
within the umbrella of providing U.S. forces with the best weaponry. In so
doing, the incentives of the process—both positive and negative—favor
maximizing programs. Parochialism, optimism, protectionism, and
information hoarding are pragmatic responses to these incentives, while
cost growth, schedule delays, duplication, and performance problems are
the logical consequences. These cultural issues are not unique to DOD’s

Page 11                                                      GAO/T-NSIAD-97-140
                         weapons acquisitions; we have reported on a similar situation with respect
                         to major acquisitions undertaken by the Federal Aviation Administration.7

A Joint Perspective Is   Several attempts have been made to strengthen DOD’s ability to set
Needed                   program requirements and priorities from an aggregate perspective to curb
                         the dominance of the individual service perspective. These include (1) the
                         Goldwater-Nichols Department of Defense Reorganization Act of 1986,
                         (2) the increased responsibilities given to the Joint Requirements
                         Oversight Council, and (3) the establishment of the joint warfighting
                         capability assessment process. Although these efforts have improved DOD’s
                         joint orientation, the individual services continue to heavily influence
                         defense decisions, particularly those related to investments in weapons.

                         In its May 1995 report, the Commission on Roles and Missions of the
                         Armed Forces faulted the decision support processes that DOD used to
                         develop requirements and make resource allocation decisions. It cited a
                         need for the Joint Requirements Oversight Council and the Office of the
                         Secretary of Defense staff to address DOD needs in the aggregate. The
                         Commission found that each service was fully engaged in trying to deliver
                         to the commanders in chief what it viewed as the best possible set of its
                         specific capabilities, without taking into account the similar capabilities
                         provided by the other services. We believe that the Chairman of the Joint
                         Chiefs of Staff must be the strong advocate for the joint perspective that
                         the Goldwater-Nichols legislation intended.

                         In our review of combat air power, we found that DOD had not sufficiently
                         assessed joint mission requirements and was not well positioned to
                         determine the need for and priority of its planned investments. Joint
                         warfighting capability assessment teams have thus far had little impact in
                         identifying unneeded overlaps and duplication in existing capabilities or in
                         weighing the relative merits of alternatives. Assessments that could
                         threaten service plans and budgets are frequently avoided, and the
                         potential effects of program reductions or cancellations on careers, jobs,
                         and industrial base inhibit serious consideration of alternatives.

                         We also found that not enough information is available above the service
                         levels to weigh individual investments against aggregate capabilities.
                         Consequently, there is little assurance that the decisions to buy or modify
                         air power systems are sound. Aggregate analysis has been limited by

                          Aviation Acquisition: A Comprehensive Strategy Is Needed for Cultural Change at FAA
                         (GAO/RCED-96-159, Aug. 22, 1996).

                         Page 12                                                                     GAO/T-NSIAD-97-140
                (1) weak analytical tools and databases, (2) weaknesses in
                decision-making support processes (such as the Office of the Secretary of
                Defense’s oversight being limited by information shortages and the limited
                ability of joint warfighting concerns to influence the requirements for new
                weapons), and (3) service resistance.

                Conversely, much of the information for making decisions on major
                acquisition programs is developed by the individual services and is limited
                in scope. The services conduct considerable analyses to identify mission
                needs and justify new weapons proposals. The needs are not based on
                assessments of the aggregate capabilities of the services to perform
                missions and DOD does not routinely review service modernization
                proposals from such a perspective. Currently, reviews done by the Office
                of the Secretary of Defense and the Joint Requirements Oversight Council
                have not provided adequate assurance that there is a valid mission need,
                that force capabilities are properly sized, and that the most cost-effective
                alternative has been identified.

                As you know, DOD was required to submit a plan to reduce and restructure
DOD’s Planned   its acquisition workforce in response to Section 906 of the Fiscal Year 1996
Restructuring   Defense Authorization Act. Specifically, the plan was to (1) result in an
                acquisition workforce that was 25 percent smaller by the end of fiscal year
                2000 than it was in fiscal year 1996, (2) eliminate duplication of functions,
                (3) maximize opportunities for consolidation among DOD’s acquisition
                organizations and (4) assess specific streamlining and restructuring
                options. DOD submitted the plan in January of this year and at the request
                of this Committee, we have just begun an evaluation of it. But today, I can
                offer some preliminary observations.

                It appears that the plan falls short of what is needed.

                DOD has presented numbers in the plan that show a declining workforce.
                The definitional differences I described earlier in my statement could
                make it difficult to evaluate the extent of any quantitative changes in the
                workforce. These declines, as we have previously shown, do not
                necessarily indicate commensurate savings, do not preclude contracting
                out functions previously performed by government employees, or ensure
                that organizations and functions have been appropriately adjusted and not
                just “hollowed out.”

                Page 13                                                    GAO/T-NSIAD-97-140
              In responding to the legislative requirement to eliminate duplication of
              functions and maximize opportunities for consolidation among acquisition
              organizations, the plan includes actions such as base closures and pending
              plans that will not take effect until after the year 2000. The plan does not
              assess specific streamlining and restructuring options but rather
              concludes that DOD’s current efforts are sufficient. It is unclear whether
              the plan is maximizing opportunities to consolidate or will result in an
              acquisition workforce and structure that will achieve better program

              If better program outcomes are desired and persistent acquisition
Conclusions   problems are to be alleviated, then the motives and incentives that drive
              the participants and the process must be realigned to produce such
              outcomes. Thus, decisions on how to reduce or restructure DOD’s
              acquisition workforce should, at the same time, alter the status quo and
              improve outcomes.

              Whether DOD’s acquisition workforce and organizations drive the
              outcomes of the acquisition process or are a reflection of them, they are
              connected in a way that should be considered in contemplating solutions.

              Mr. Chairmen, this concludes my prepared statement. I would be happy to
              respond to any questions you or other Members of the Subcommittees
              may have.

              Page 14                                                   GAO/T-NSIAD-97-140
Page 15   GAO/T-NSIAD-97-140
Related GAO Reports

              Defense Restructuring Costs: Information Pertaining to Five Business
              Combinations (GAO/NSIAD-97-97, Apr. 1, 1997).

              Defense Outsourcing: Challenges Facing DOD As It Attempts to Save
              Billions in Infrastructure Costs (GAO/T-NSIAD-97-110, Mar. 12, 1997).

              Combat Air Power: Joint Mission Assessments Could Enhance Investment
              Decisions (GAO/T-NSIAD-97-105, Mar. 5, 1997).

              Defense Aircraft Investments: Major Program Commitments Based on
              Optimistic Budget Projections (GAO/T-NSIAD-97-103, Mar. 5, 1997).

              Weapons Acquisition: Better Use of Limited DOD Acquisition Funding
              Would Reduce Costs (GAO/NSIAD-97-23, Feb. 13, 1997).

              High-Risk Series: Defense Weapon Systems Acquisition (GAO/HR-97-6,
              Feb. 1997).

              Combat Air Power: Joint Mission Assessments Needed Before Making
              Program and Budget Decisions (GAO/NSIAD-96-177, Sept. 20, 1996).

              Aviation Acquisition: A Comprehensive Strategy Is Needed for Cultural
              Change at FAA (GAO/RCED-96-159, Aug. 22, 1996).

              Navy Aviation: F/A-18E/F Will Provide Marginal Operational Improvement
              at High Cost (GAO/NSIAD-96-98, June 18, 1996).

              Acquisition Management: Fiscal Year 1995 Waivers of Acquisition
              Workforce Requirements (GAO/NSIAD-96-102, Apr. 15, 1996).

              Defense Infrastructure: Budget Estimates for 1996-2001 Offer Little
              Savings for Modernization (GAO/NSIAD-96-131, Apr. 4, 1996).

              Defense Acquisition Organizations: Changes in Cost and Size of Civilian
              Workforce (GAO/NSIAD-96-46, Nov. 13, 1995).

              DOD Infrastructure: DOD’s Planned Finance and Accounting Structure Is Not
              Well Justified (GAO/NSIAD-95-127, Sept. 1995).

              Weapons Acquisition: Low-Rate Initial Production Used to Buy Weapon
              Systems Prematurely (GAO/NSIAD-95-18, Nov. 21, 1994).

              Page 16                                                   GAO/T-NSIAD-97-140
           Related GAO Reports

           Weapons Acquisition: A Rare Opportunity for Lasting Change
           (GAO/NSIAD-93-15, Dec. 31, 1992).

           Underestimation of Funding Requirements in Five Year Procurement Plans
           (GAO/NSIAD-84-88, Mar. 12, 1984).

(707257)   Page 17                                               GAO/T-NSIAD-97-140
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