Defense Research and Development

The Defense Department (DOD) awarded about $2.17 billion--$1.4 billion in contract funding and $769 million in grants--for research, development, test, and evaluation projects to colleges, universities, and other organizations in fiscal year 1993. DOD's data show that about $1 billion of these contracts and about $75 million in grants were noncompetitive. DOD has not fully complied with the law's reporting requirements in that it submitted only the required reports for 1989 to 1991, and not for 1992 or 1993. DOD is not required to disclose all noncompetitive awards to colleges, universities, and other organizations in its reports because funding under $1 million is excluded as are awards to affiliated groups, such as research laboratories. The law's notification and waiting period requirements only apply under very limited circumstances. As a result, DOD has not had to notify Congress or wait 180 days before making any of its noncompetitive awards and, according to DOD officials, has not done so.

GAO noted that: (1) DOD awarded about $2.17 billion ($1.4 billion in contract funding and $769 million in grants) for research, development, test, and evaluation (RDT&E) to colleges, universities, and other organizations, including university-affiliated laboratories, in FY 1993; (2) DOD's data show that about $1 billion of these contract actions and about $75 million in grants were noncompetitive; (3) DOD has not fully complied with 10 U.S.C. 2361 reporting requirements in that it only submitted the required reports for 1989 to 1991, and not for 1992 or 1993; (4) section 2361 does not require DOD to disclose all noncompetitive DOD RDT&E awards to colleges, universities, and related organizations in the mandated reports because it excludes funding under $1 million and excludes awards to affiliated organizations such as research laboratories; (5) 10 U.S.C. 2361 notification and waiting period requirements only apply under very limited circumstances; and (6) as a result, DOD has not had to notify Congress or wait 180 days before making any of its noncompetitive awards and, according to DOD officials, has not done so.