Statement of Walton H. Sheley, Jr. Deputy Director, Procurement and Systems Acquisition Division Before the Task Force on Government Efficiency Committee on the Budget House of Representatives on the Effect of OMB Circular A-109 on Major Systems Acquisition and the Use of Competitive Procurement in the Department of Defense
Abstract
I am pleased to have this opportunity to discuss (1) GAO's observations on the effect of OMB Circular A-109 on the acquisition of major weapon systems and the acquisition of major weapon systems and (2) the use of competitive procurement by the Department of Defense. The funds needed to acquire major weapon systems will have a big impact on future budgets. The impending "bow wave" in defense funding requirements is real. The current cost estimates for Department of Defense procurement is estimated to be over $560 billion. If we assume a rather modest projection of 30 percent cost growth, which is less than DOD is experiencing now, the procurement cost could climb to $725 billion. Assuming a relatively long 10-year procurement time, we can see that DOD will need $72 billion per year for procurement.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 08, 1979
- Accession Number
- AD1150062
Entities
People
- Walton H. Jr Sheley
Organizations
- United States Government Accountability Office