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NSIAD-85-131 1 (1985-09-06)

handle is hein.gao/gaobabntf0001 and id is 1 raw text is: BY THE U.S. GENERAL ACCOUNTING OFFICE Report To The Secretary Of Defense DOD's Industrial Modernization Incentives Program: An Evolving Program Needing Policy And Management Improvement The DOD Industrial Modernization Incentives Program provides incentives to contractors for investing in efficient manufacturing equipment and processes--a way to reduce cost of weapon systems. DOD officials estimate that the pro- gram will reduce costs by over $6 billion in the next 8 to 10 years. A test of the program began in 1982 to assess approaches for carrying out pro- gram objectives and to develop program policy and guidance. Early results show that the program has the potential for reducing acquisition costs and providing additional benefits. Draft policy and guidance has been developed that adequately discusses several important aspects of the pro- gram.However, DOD needs to establish an im- proved cost and benefit reporting system, further evaluate the effects of the numerous approaches being used, and strengthen the program planning process. GAO recommends actions to address these needs; DOD concurs with the recommendations. 127840 00 7 0 7 GAO/NSIAD-85-131 1CQOUb4 SEPTEMBER 6, 1985 C) (C>

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