Defense Modernization Account Operations and Benefits.
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV
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The Secretary of Defense or the secretary of a military department may transfer certain unexpired funds from their appropriations1 to the Defense Modernization Account, established by law in 1996.2 Funds must come from savings achieved through efficient management of procurement or support of installations and facilities.3 Account funds may be used only for increasing procurement or for modernizing an existing system or a system being procured under an ongoing procurement program. Congressional intent in establishing the account was to encourage savings by the Department of Defense DOD and its military departments and to make those savings available for meeting shortfalls in funding for modernization. DOD is required to submit quarterly reports on the activities of the account to the six committees specified in the legislation.4 The legislation establishing the account requires us to review operations and benefits by March 1, 2000, and again by March 1, 2003. To satisfy the first review requirement, we determined the status of the funding and uses of the account, and whether DOD has reported to the six committees on the activities of the account.
- Economics and Cost Analysis