Defense Acquisitions: Higher Priority Needed for Army Operating and Support Cost Reduction Efforts
Abstract
According to DOD, operating and support costs of fielded weapon systems are increasing and are reducing the funds available for modernization. Reduced funding for new weapons is requiring the Army to keep fielded weapon systems in its inventory longer; this increases operating and support costs and further decreases funds available for modernization. The Under Secretary of Defense (Acquisition, Technology, and Logistics) has characterized this as a "death spiral." Currently, DOD budgets over $40 billion a year for acquisition and operation and maintenance of Army weapon systems. In fiscal years 1998-2000, the operation and maintenance portion of the Army's budget averaged about $27 billion a year. Included in this amount were funds for civilian pay, contract services for maintenance of equipment and facilities, fuel, supplies, and repair parts for weapons and equipment. As shown in figure 1, acquisition funds (i.e., procurement and research and development funds) allocated to the Army over the 3-year period decreased about 5 percent, from $15.3 billion to $14.5 billion, while funding for operation and maintenance activities increased about 19 percent, from $25 billion to $29.8 billion. (All funding and cost data presented in this report are in then-year dollars.)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2000
- Accession Number
- ADA382405
Entities
Organizations
- United States Government Accountability Office