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Defense Production Act: Foreign Involvement and Materials Qualification in the Title III Program
[Technical Report, Congressional Report]
Government Accountability Office
Pagination or Media Count:
The title III program has established and expanded domestic production capacity for materials that were considered defense critical. Since title III was reactivated 8 years ago, seven projects have been funded, totaling approximately 85 million in contract awards. One project was terminated early. Of the six remaining projects, two have been completed and four are still active but at various phases of completion. Four of the six projects have or had some foreign involvement. The impact of foreign involvement on the effectiveness of the title III program is difficult to determine because 1 three of the four projects are not yet completed and 2 none of the title III materials produced to date under these four projects is actually being used in a weapon system. This lack of use is largely because of 1 a decrease in DOD demand for the materials, especially a decrease in the number of new weapon systems entering production because of the defense drawdown and 2 the high cost of testing and qualifying them for weapons. Most of the title III contracts are not classified, which results in reduced requirements for DOD review, oversight, and approval of foreign involvement in these projects. The title III office has identified and is implementing strategies to improve the program through more effective planning, management, and contracting strategies. Such strategies include 1 more flexible contract terms, 2 active support of material qualification efforts, and 3 involvement of more potential customers in evaluating materials. Past experience indicates that the title III program could more effectively implement these strategies so as to provide more support in qualification of title III materials and to better respond to changes in demand for such materials.
[A, Approved For Public Release]