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GAO-01-83R 1 (2000-10-26)

handle is hein.gao/gaocrptalkx0001 and id is 1 raw text is: G Ga A Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 October 26, 2000 The Honorable John L. Mica Chairman, Subcommittee on Criminal Justice, Drug Policy and Human Resources Committee on Government Reform House of Representatives Subject: Defense Trade: Data Collection and Coordination on Offsets Dear Mr. Chairman: Defense offsets have gained increasing attention in recent years because of the potential impact they may have on the U.S. economy and national security. Defense offsets are the full range of industrial and commercial benefits that firms provide to foreign governments as inducements or conditions for the purchase of military goods and services. They include, for example, coproduction arrangements and subcontracting, technology transfers, in-country procurements, marketing and financial assistance, and joint ventures. Views on the effects of offsets are divided between those who believe they are an unavoidable part of doing business overseas and those who believe they negatively affect the U.S. industrial base. In 1984 and again in 1999, the Congress placed data collection and reporting requirements on the administration in an attempt to obtain information as a basis for an analysis of the impact of offsets on the U.S. industrial base. On June 29, 1999, you chaired a hearing to discuss concerns raised by opponents of offsets and explore both sides of the issue.' As a result of that hearing, you asked us to review the administration's data collection and policy coordination efforts concerning offsets. Accordingly, you asked us to determine (1) the number of federal agencies collecting data on offsets and the type of data they collect and (2) the extent of coordination among federal agencies for data collection and policymaking related to offsets. RESULTS IN BRIEF Three federal agencies are required by law to report to the Congress on defense offsets, although other agencies may collect related data. The Department of 1 Defense Offsets: Are They Taking Away Our Jobs? Hearing before the Subcommittee on Criminal Justice, Drug Policy, and Human Resources of the Committee on Government Reform, House of Representatives, June 29, 1999. GAO-01-83R Defense Trade

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