Pilot Program on Sales of Manufactured Articles and Services of Army Industrial Facilities
Abstract
This is the third of three reports on our audit of the pilot program on sales of manufactured articles and services of Army industrial facilities. This report discusses our assessment of the pilot program to sell manufactured articles and services of three industrial facilities to commercial contractors providing weapon systems to DoD. Section 141 of the FY 1998 Defense Authorization Act authorized the pilot program because of congressional concern that the industrial facilities were operating inefficiently because work was not available with reduced defense budgets. According to Army officials, in December 2000, 80 percent of Rock Island Arsenal industrial capacity and 85 percent of Watervliet Arsenal industrial capacity was unused, compared to less than 20 percent of unused capacity in 1988. The unused industrial capacity at McAlester Army Ammunition Plant was 86 percent at the end of 2000. Section 115 of the FY 2000 Defense Authorization Act extended the pilot program through FY 2001. The pilot program provides the opportunity for Rock Island Arsenal, Watervliet Arsenal, and the McAlester Army Ammunition Plant, to increase their workloads by participating in contracts and teaming arrangements with United States manufacturers, assemblers, developers, and other concerns under DoD weapon system programs without determining whether the articles and services are available from United States commercial sources. The DoD budget indicates that DoD anticipates spending about $48 billion in FY 2001 to procure new weapon systems and upgrade existing systems.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2001
- Accession Number
- ADA387611
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense