DOD's (Department of Defense's) Industrial Modernization Incentives Program: An Evolving Program Needing Policy and Management Improvement

摘要

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 program 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 program 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 program. However, DOD needs to establish an improved 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.