Defense Acquisitions: Higher Priority Needed for Army Operating and Support Cost Reduction Efforts: NSIAD-00-197

September 2000
GAO Reports;9/29/2000, p1
Government Documents
The high cost to operate and support the Army's weapon systems is absorbing an increasing share of the Army's budget and is reducing funds available for buying new systems. This, according to Department of Defense (DOD) officials, results in older weapons being kept in the inventory longer, further increasing their costs and reducing funds available for modernization. DOD directed the services to designate 10 pilot programs to test innovative approaches to reduce operating and support costs. It set a broad goal that by fiscal year 2000 the projected life-cycle costs--the system from acquisition through disposal--be from 20 to 50 percent less than the actual costs of the replaced systems. This report addresses the effectiveness of the Army's efforts to reduce the operating and support costs for: (1) weapons systems under development; and (2) fielded weapon systems. GAO found that the Army is unlikely to significantly reduce projected operating and support costs of weapons systems under development, in part, because it has not established needed mechanisms to achieve the reductions. Furthermore, the Army's cost reduction efforts for fielded systems lack the priority needed to meet DOD's goals.


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