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NSIAD-84-54 1 (1984-02-01)

handle is hein.gao/gaobabngc0001 and id is 1 raw text is: N,; \UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON. D.C. 20548 NATIONAL 5 ECLUqIr AND INTtAN ATIONAL AFfAIRS DIVISION February 1, 1984 B- 20 6570 The Honorable Ted Stevens Chairman, Subcommittee on Defense Committee on Appropriations 123312 United States Senate Dear Mr. Chairman: Subject: GAO examination of Air Force's proposed multiyear procurement for the Defense Satellite Communications System III (NSIAD-84-54) In response to your December 21, 1983, request, we examined the Air Force's proposed multiyear procurement for the Defense Satellite Communications System (DSCS) III. As requested, we briefed your office on January 16, 1984. This letter summarizes the information presented during the briefing. PROGRAM STATUS The Department of Defense (DOD) has decided to procure 14 DSCS III satellites. Seven are already under contract. In fis- cal year 1985 the Air Force plans to request approval for a multiyear procurement of the remaining seven. On December 7, 1983, the Air Force requested conqressional approval for a multiyear advanced procurement of seven long-lead parts sets for the remaining seven satellites. At that time it had negotiated a $70.1 million multiyear price with the prime contractor, General Electric Space Division, for the purchase of seven minus sets. The minus refers to certain parts which have yet to be defined and, therefore, were not included in the negotiated price. As discussed later, the Air Force does not expect these undefined parts to affect design stability. The parts definition is forthcoming and the Air Force is confident that the full seven parts sets can be purchased for under the $81.6 million included in its fiscal year 1984 budget. Initially the Air Force felt it needed this $81.6 million to buy four parts sets but now believes that under a multiyear program, it can buy seven. OBJECTIVES, SCOPE, METHODOLOGY As requested by your office, we questioned the Air Force as to the stability of the DSCS III program, including the poten- tial that not all of the satellites to be included in the multi- year procurement will be completed, the maturity of design, and 0_-:119D (393041)

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