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AFMD-83-105 1 (1983-09-28)

handle is hein.gao/gaobabnde0001 and id is 1 raw text is: !N,~ UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 AccOUriNAND AMMMANGIA, kSAN9M rWmr 0VOMN September 28, 1983 B-207974 The Honorable John J. LaFalce Chairman, Subcommittee on Economic Stabilization 122483 Committee on Banking, Finance, and Urban Affairs House of Representatives Subject: Intetim Observations on Effectiveness of DOD's Manufacturing Technology Program (GAO/ AFMD-83-105) Dear Mr. Chairman: In response to your request, we are reviewing the effective- ness of the Department of Defense's (DOD's) Manufacturing Tech- nology (MT) Program. During our ongoing review, we have dis- cussed with your staff the complexity of evaluating the overall effectiveness of the MT program because of (1) differing views on the criteria to be applied and (2) the limited information avail- able on how or whether the results of MT projects have been used. Because of these complexities in assessing overall program effectiveness, we agreed with your staff to judgmentally select over 100 individual projects--completed or approved since 1979-- in which we would identify and document the results. We have not finished reviewing the selected projects and therefore have not reached conclusions, but we are providing interim observations on MT effectiveness as requested by your staff. Based on our work to date, it appears that many MT projects have not achieved the primary program goal of improving produc- tivity and reducing Defense acquisition costs. However, there are differing views in DOD and elsewhere on an appropriate ap- proach to evaluating MT program effectiveness. Thus, despite the difficulties in identifying instances where completed MT projects have resulted in verifiable productivity increases and acquisi- tion cost reductions, many DOD officials, defense contractors, and knowledgeable observers consider the MT program highly effec- tive in introducing new or improved technologies. Among the benefits cited is an undetermined degree of spin-off technology use by commercial enterprises. (910358) ()-Jo -I h

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