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B-169675 1 (1972-09-14)

handle is hein.gao/gaobaagcy0001 and id is 1 raw text is: V. UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT AND SYSTEMS ACQUISITION DIVISION SEP 1 4 1972 B-169675 L M 0 !96 391o1/1 1 The Honorable The Secretary of Defense Attention: Assistant Secretary of Defense (Comptroller) Dear Mr. Secretary: In a previous review of the Amy--Nunt.ionsiommands ,.engina$ng dgeygploimnt and product improvement projects, we reported a need for better ~mngment.,ontrols. In response to our draft report, the Assistant Secretary of the Army (Research and Development) advised that action had been taken to improve the management weaknesseI noted. We notified your office that a follow-up review would be made. This report is our assessment of the new management controls. We evaluated the preparation, review, and approval of the fiscal year 1971, 1972, and 1973 product improvement proposals processed by the Army's Aviation Systems Command (AVSCOM), a major subordinate command of the Army Material Command (AMC). We also analyzed the re- view, approval and coordination procedures followed by AMC, the Com- bat Developments Command (CDC), the Deputy Chief of Staff for Logistics, and the Assistant Chief of Staff for Force Development. Since the introduction of the present major aircraft into the Army system, AVSCOM has spent more than a half billion dollars to im- prove them. Since the implementation of the revised management con- trols in 1969, AVSCOM has spent an average of about $57 million a year in aircraft improvements. New Management Controls Have Not Resolved All The Problems Although revised Army Regulation (AR) 700-35 has produced a formalized product improvement program with many more management IB-169675, June 1, 1971. Th-0A, Q300i

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