International Air and Trade Shows

Since May 1991, the Defense Department (DOD) has sent more personnel and equipment to major international air/trade shows than in past years. DOD pegs the cost of participating in six selected shows since May 1991 at about $3.8 million. Half this amount involves training, with the rest arising from personnel support costs and the costs for technology display booths. DOD's contractors defrayed most of the incremental costs for service members transporting and supporting the equipment. Because the policies for participating in international air and trade shows are vague, GAO could not document whether DOD's policies have changed during the last two years. DOD policy on the leasing of equipment to defense contractors for these shows has remained consistent: contractors wanting to demonstrate DOD equipment must lease it from the military and pay all related costs. DOD's increased participation in international events and its use of waivers, however, have made more U.S. equipment available, sparing contractors from paying full leasing costs. In other leading industrialized nations, policies vary as to whether equipment sent to international air/trade shows should promote national security, foreign policy, or community relations goals and what costs contractors should shoulder in leasing equipment from the government.

GAO found that: (1) DOD increased participation in international air and trade shows to accomplish national security, foreign policy, and community relations goals; (2) direct costs of air show participation include training and incremental costs; (3) indirect costs of air show participation include those contractors incurred and charged to the government as overhead on government contracts; (4) the lack of written policies, approval of participation on a show-by-show basis, and the fact that existing community relations guidelines do not govern participation in shows precludes determination as to whether DOD has changed its participation policies; (5) increased participation since 1991 in international air and trade show did not result from a policy change; (6) DOD has not changed its policy on leasing equipment to contractors for international air and trade shows; (7) a specific statutory authority allows DOD to participate in international air and trade shows for national security reasons; and (8) other leading industrialized nations have varying policies on participating in and providing financial assistance to military contractors at air and trade shows.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Team: Phone: