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DoD-Wide Audit of the Secure Terminal Unit-III Program

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Rept. for Jan 1998-Jun 1989

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This DOD-Wide summary report on the Audit of the Secure Terminal Unit STU-III Program is provided for your information and use. The STU-III is an unclassified Government-approved telephone that can secure communications on commercial, Automatic Voice Network, or foreign telephone networks. As of July 1988, approximately 80,000 STU-III telephones had been ordered at a cost of about 272 million. The audit was made by the Office of the Assistant Inspector General for Auditing, DOD, the Army Audit Agency, the Naval Audit Service, and the Air Force Audit Agency from January 1988 through June 1989. The objectives of the audit were to determine if requirements for STU-IIIs were consistently developed, adequately supported, and appropriately categorized and prioritized, and if the STU-III Program complied with DOD system acquisition procedures. The audit included an analysis of the funds budgeted and programmed from FY 1985 to FY 1991 to satisfy STU-III requirements and an evaluation of the effectiveness of applicable internal controls. The DOD-wide audit disclosed that the STU-III Program was not effectively managed and controlled. Requirements were not consistently developed, adequately supported, or appropriately categorized and prioritized contractor requirements were not identified and adequate funds were not budgeted or programmed. As a result, there was no assurance that classified and the most sensitive information related to national security was being protected, or that DODS investment in the STU-III Program was effectively used. In addition, the STU-III Program did not comply with the procedures for system acquisitions contained in DOD Directives 5000.1 and 5000.2. Therefore, the Defense Acquisition Board was excluded from major decisions relating to threat, affordability, acquisition strategy, alternative concepts, logistical support, and life-cycle costs.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Government and Political Science
  • Logistics, Military Facilities and Supplies

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