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PLRD-82-69 1 (1982-04-30)

handle is hein.gao/gaobabdhl0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 20548 B-207178 4C at gs~*. APRIL 30,1982 ,,, o++ ooELENkBED The Honorable John Tower Chairman, Committee on Armed Services United States Senate 118485 Dear Mr. Chairman: Subject: Estimated Savings Reported by the Department of Defense (PLRD-82-69) In your February 5, 1982, letter, you asked us to evaluate the efforts by the Department of Defense to achieve maximum economies and efficiencies in its operations. In a February 8, 1982, news release, Defense indicated that its efforts reduced the fiscal year 1983 total obligational authority (TOA) by $7.3 billion and the fiscal years 1981 through 1987 TOA by $51.4 billion. You also asked us to verify the reasonableness and accuracy of the estimated economies and to determine if Defense's system of tracking actual savings is adequate. Our analysis showed that some initiatives and actions are being taken which, if carried out as planned, could achieve sub- stantial savings. The savings are based on preliminary budget estimates and, therefore, must be considered tentative. We also found that formal systems to track the economies have not been instituted. Because of time constraints and data limitations, we were unable to make a detailed analysis. Therefore, we concentrated our work on assessing the reasonableness of the actions being taken and looking for indications that the savings estimates were either grossly overstated or understated. Even though we saw no evidence of grossly overstated or understated savings, we cannot express an overall opinion on the accuracy of the reported econ- omies and efficiencies. This is particularly so in that DOD, even now, continues to refine its earlier savings projections and to examine other initiatives and programs for additional savings. We made our review at the Office of the Secretary of Defense and at the Departments of the Army, Navy, and Air Force. We inter- viewed individuals responsible for compiling the economies and efficiencies package. We examined, on a limited basis, backup information for large dollar projects to determine what actions were planned to achieve the savings. We focused on TOA savings (943377)

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