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B-160725 1 (1977-02-22)

handle is hein.gao/gaobabmks0001 and id is 1 raw text is: rail%%- * .4ZHXA l GENERAL OF THE UI1K WTAiW C) : / =i' 7?= i FEB 2 II1IIIII11111III 1II l 1111ffIIiii ! 1ff 11111IIIII Do 10t &akeLM101695 DOa £xam ke availab2e to -ulozoc: ,/,.Ltt9 The Honorable Jack Brooks, Chai man .. . Comittee on Government Operations House of Representatives RELEASED Dear Mr. Chairman: Your October 26, J976, letter requested that we provide information to facilitate a thorough review and probable hearings by your committee on procurement in the Federal Government. You specifically requested that we identify those procurement practices that are in need of changes and those procurement-related laws or regulations that should be enacted or amended. As you are well aware, there are numerous procurement issues that bear looking into by your conittee. We have, therefore, identified for your consideration what we believe to be some of the more prominent issues which warrant early consideration by the 95th Congress. These are discussed in some detail in the following sections. DOD's ACQUISITION MANAGEMENT In September 1975, the DOD Acquisition Advisory Group (AAG) recommended that the Office of the Secretary of Defense (OSD) make certain changes in the weapn;i system acquisition process. Essentially, the AAG recommended that there should be less involvement by the OSD in major systems acquisitions decisions. In late January 1976, the Deputy Secretary of Defense requested the Sc.rretaries of the Military Departments and the various Assistant Secretaries of Defense to implement the key AAG recommendations. We are concerned that tfre implementation of some of those recornendations may ere the central policy direction and executive control of the acquisi- tion process that the Procurement Comnission was trying to strengthen and improve. In our cpinion, it is essential for OSD to retain approval authority for the key management decisions related to major program initiation, advanced development, full-scale development, and production. Moreover, in order to exercise that authority OSD must have the ability to independently assess alternatives, risks, and progress. In this connection, for example, we are concerned that an apparent downgrading of systems analysis in OSD may severely hamper OSD's ability to analyze proposals made by the Services. We believe that the combination of decentralization of management and the de-emphasis of systems analysis will adversely affect OSD's acquisitionanagement. rrr FASED

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