Reducing the Cost of Weapons Acquisitions

GAO discussed the reduction in the costs of weapons systems acquisition. The Department of Defense (DOD) is initiating steps to identify and solve cost problems, but there continue to be serious structural problems in the acquisition process. Analyzing the historical relationship between budgetary projections in DOD 5-year plans and the obligations ultimately incurred shows that the plans have consistently understated budget requirements, and there is little evidence that this pattern will change. DOD has indicated that multiyear procurement is reducing the cost of acquiring weapons systems, but GAO believes this approach still needs to be carefully reviewed on a case-by-case basis. Dual-source procurement has been suggested as a means for attaining additional competition in the acquisition process. However, this method can be cost effective only when price reduction resulting from competition outweighs other costs the government would incur from maintaining the additional sources. GAO also reviewed selected joint acquisition methods and concluded that there are too many impediments for these methods to be successful.