Accession Number : ADA319043

Title :   Future Years Defense Program: Lower Inflation Outlook Was Most Significant Change From 1996 to 1997 Program.

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV

PDF Url : ADA319043

Report Date : 12 DEC 1996

Pagination or Media Count : 25

Abstract : In 1995, the General Accounting Office compared the 4 common years (1996-99) in DOD'S 1995 and 1996 FYDPs (Future Years Defense Program) and reported that DOD projected substantial shifts in funding priorities. Specifically, about $27 billion in planned weapon system modernization programs had been eliminated, reduced, or deferred to 2000 or later. Also, the military personnel, operation and maintenance, and family housing accounts had increased by over $21 billion and were projected to continue to increase to 2001 to support DOD'S emphasis on readiness and quality of life programs. Moreover, the total DOD program was projected to increase by about $12.6 billion. The Secretary of Defense wants to reform the acquisition process and reduce and streamline infrastructure to help pay the billions of dollars that DOD projects it will need to modernize the force. In its September 1995 report, GAO said that although DOD anticipated reducing infrastructure to achieve substantial savings, GAO's analysis of the 1996 FYDP showed that savings accrued or expected to accrue from base closures and a smaller force appeared to be offset by increased funding for other infrastructure priorities, such as base operations and management headquarters. In May 1996, GAO analyzed the infrastructure portion of DOD's 1997 FYDP and reported that infrastructure costs are projected to increase by about $9 billion, from $146 billion in 1997 to $155 billion in 2001.2

Descriptors :   *COST ESTIMATES, *MILITARY MODERNIZATION, *SAVINGS, *BASE CLOSURES, *MILITARY DOWNSIZING, *INFRASTRUCTURE, MILITARY OPERATIONS, MILITARY PERSONNEL, MILITARY FACILITIES, ACQUISITION, DEFENSE SYSTEMS, COSTS, QUALITY, HOUSING(DWELLINGS), LIVING STANDARDS, INFLATION(ECONOMICS).

Subject Categories : Economics and Cost Analysis
      Defense Systems

Distribution Statement : APPROVED FOR PUBLIC RELEASE