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DOD's fiscal year 1986 ammunition procurement and production base programs report

In response to a congressional request, GAO reviewed the military services' justification for their fiscal year (FY) 1986 appropriation requests for ammunition and the Army's request for ammunition production base funding. GAO believes that about $1.1 billion of the services' ammunition requests and $129.2 million of the Army's production base request should not be provided. GAO found that the Army's request for ammunition was overstated because of excess inventory, purchases that exceeded needs, overstated unit costs, premature procurement, and inclusion of procurements that did not require FY 1986 funds. In addition, delays in developing an acquisition strategy for one weapon system and potential production problems on another have been encountered. The Navy's request for ammunition was overstated due to excess inventory, overstated costs, premature procurement, leftover funding, and technical problems, and there were unresolved issues involving three of its weapon systems which warranted congressional attention. GAO also found that: (1) the Marine Corps' request for ammunition was overstated due to premature procurement and overstated costs; and (2) the Air Force's request for ammunition was overstated due to premature procurement, overstated costs, excess inventories, and technical problems. Finally, the Army's request for its ammunition production base program was overstated because some of the procurement was premature due to design and technical problems which need resolution and funding that was not needed for a demonstration project.

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