Defense Conversion

In fiscal year 1993, the Defense Department (DOD) committed or obligated about $2.7 billion of the $3.2 billion authorized and appropriated for 57 defense conversion programs. For 54 defense conversion programs in fiscal year 1994, DOD committed or obligated about $1.9 billion of the approximately $2.9 billion authorized and appropriated. Estimates of DOD's portion of the total federal funds to be spent on defense reinvestment and conversion initiatives for fiscal years 1993 through 1997 are increasing. The President's defense reinvestment and conversion initiative, announced on March 11, 1993, totaled $19.6 billion over five years; DOD's portion was 42 percent. The Office of Management and Budget's February 1994 estimate of the cost of the President's initiative was $21.6 billion; DOD's portion has increased to 59 percent.

GAO found that: (1) in FY 1993 DOD committed or obligated about $2.7 billion of the approximately $3.2 billion authorized and appropriated for 57 defense conversion programs; (2) in FY 1994 DOD committed or obligated about $1.9 billion of the approximately $2.9 billion authorized and appropriated for 54 defense conversion programs; (3) estimates of DOD funds to be spent on defense reinvestment and conversion initiatives for FY 1993 through FY 1997 are increasing; (4) DOD was originally scheduled to receive, over 5 years, 42 percent of the President's $19.6-billion defense reinvestment initiative; and (5) the Office of Management and Budget estimates that the cost of the President's initiative will be $21.6 billion, while the DOD portion has increased to 59 percent.