Defense Industrial Base

DOD Needs Better Method of Identifying Critical Technology Funding Gao ID: NSIAD-92-13 February 5, 1992

The Defense Department (DOD) is required to prepare an annual Critical Technologies Plan beginning in 1989 that identifies technologies considered critical to the long-term superiority of U.S. weapon systems. During congressional hearings, DOD was unable to provide detailed information on the funding of the critical technologies. This lack of information was cited during the hearings as a major obstacle in effectively managing the defense industrial base. GAO found that DOD's methodology for identifying the funding for the designated critical technologies did not include (1) collecting data on the extent to which contractors use their Independent Research and Development/Bid and Proposal funds to invest in the critical technologies, (2) asking the military services to link funding to the specific technical goals contained in the plan, and (3) developing data on actual expenditures. In addition, the military services and defense agencies used different bases in responding to requests for information.

GAO found that the Office of the Secretary of Defense's (OSD) methodology for identifying designated critical technologies funding did not include: (1) collecting data on the extent to which defense contractors use their independent research and development/bid and proposal (IR+D/B+P) funds to invest in critical technologies; (2) requiring military services to link funding to the Critical Technologies Plan's specific technical goals; or (3) developing actual expenditure data. GAO also found that the military services and defense agencies used different funding methodologies to respond to OSD information requests.

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