Observations on Office of Management and Budget Circular A-109--Major System Acquisitions by the Department of Defense
Highlights
The Office of Management and Budget Circular A-109 prescribes policies to guide Federal agencies in managing their major system acquisition programs. The Circular is based on recommendations proposed in December 1972 by the Commission on Government Procurement. Circular A-109 applies to a variety of systems, but this report deals entirely with the Circular's application to defense activities. The Department of Defense (DOD) employs two primary methods in managing and controlling acquisition programs for major weapon systems: (1) the basic planning, programming, and budgeting system used to manage all DOD assets; and (2) the program management guidance for acquiring major weapon systems. GAO reviewed the extent to which DOD is complying with A-109 and the effect it has had on DOD's management. The Deputy Secretary of Defense informed the Office of Management and Budget's Office of Federal Procurement Policy in 1976 that DOD planned to revise a number of DOD directives which relate to system acquisition activities in order to comply with A-109.