Selected Recommendations of the President's Private Sector Survey on Cost Control

GAO commented on the recommendations of the President's Private Sector Survey on Cost Control (Grace Commission) which identified important actions Congress could pursue in the acquisition area. GAO noted that: (1) there are techniques to produce systems more economically, such as competition, economic production rates, and multiyear procurement; (2) priorities must be established in order to optimize the procurement of weapon systems; (3) improving defense planning and budgeting is necessary for any acquisition process; and (4) to make dual sourcing more effective, there needs to be an adequate evaluation of candidates to determine suitability, adequate up-front funding, and revised regulations to encourage the practice. GAO found that: (1) all of the aspects of the Grace Commission's recommendation for spare parts breakout were practical and could be implemented within executive branch authority; (2) revised regulations must be properly implemented with the necessary commitment and resources to ensure increased opportunities for breakout; and (3) cooperation among the services in the development of weapon systems is necessary for requirements determination, concept formulation, and system development and planning. GAO also found that: (1) some balance must be found which gives program managers authority and responsibility for program decisions, but higher authorities should review these decisions based on a broader perspective; (2) there are problems in role definitions and acquisition strategy criteria; (3) reliance on the private sector for commercial products and services has not been consistent with federal policy; and (4) the single greatest opportunity for significant savings lies in the requirements determination process.