Defense Procurement

Trends for 1985-93 in DOD's Spending, Employment, and Contractors Gao ID: NSIAD-92-274BR August 14, 1992

The economic impact of defense cutbacks in the 1990s will doubtless be widespread, affecting both government workers and defense contractors. This briefing report provides information on (1) trends inDefense Department (DOD) military and civilian employment since 1985, (2) trends in the number of defense-related jobs in the private sector since 1985, (3) trends in the number of DOD contractors, (4) impediments to identifying job impacts associated with changes in DOD spending at the third and fourth subcontractor tiers, and (5) trends in DOD budget authority and outlays since 1985.

GAO found that DOD: (1) active duty military employment increased from 1985 through 1987 before subsequent and continued decreases; (2) DOD civilian employment varies and is decreasing; (3) total defense-related employment shows no change from 1985, but is expected to decrease; (4) defense-related employment is statistically difficult to identify due to a lack of information from contractors and lower-tier subcontractors; and (5) budget authority is expected to continue decreasing, but DOD outlays from 1985 through 1992 did not show a clear trend.



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