Effectiveness of DoD Use of Nondevelopment Items in Major Defense Acquisition Programs

The use of nondevelopmental items NDI can result in substantial cost savings, reduced technical risk, and more prompt fielding of equipment and systems from major Defense acquisition programs MDAP. Public Law 99-661 requires that DoD use NDI to the maximum extent practicable, while Public Law 101-510 requires that DoD conduct market research into the availability of MDI before developing new items and specifications. DoD Instruction 5000.2, part 6, section L, implements these public laws. Additionally, DOD 5000.2-M requires Defense Acquisition Board DAB oversight of consideration and use of MDI on MDAP for which the DAB has cognizance. The Deputy Secretary of Defense issued a strong endorsement of expanded use of MDI on April 24, 1992. The audit objectives were to evaluate the Military Departments efforts in considering the procurement of MDI during development of MDAP and to review the adequacy of applicable internal controls.