Page 1 GAO-01-514R Defense Planning
United States General Accounting Office
Washington, DC 20548
March 20, 2001
The Honorable Donald H. Rumsfeld
Secretary of Defense
Subject: Defense Planning: Opportunities to Improve Strategic Reviews
Dear Mr. Secretary:
For the past several years, the General Accounting Office (GAO) has reviewed the
Department of Defense’s (DOD) efforts to strategically plan for the nation’s defense
needs and prepare related budgets. In particular, we evaluated DOD’s methodology
for conducting the 1993 Bottom-Up Review and the 1997 Quadrennial Defense
Review (QDR), and its preparation of several Future Years Defense Programs
(FYDP). As the Department begins a new effort to review its strategic priorities,
consider alternatives to current forces, weapons programs, and support operations,
and reach investment decisions, we would like to share some observations based on
our past work for your consideration. In particular, these areas relate to the
importance of 1) using realistic assumptions and integrated analyses to reach force
structure and modernization decisions, 2) preparing FYDPs that clearly link strategy
and resources, and 3) ensuring the Department’s review efforts carefully scrutinize
opportunities to reduce support infrastructure and improve business processes.
USE OF REALISTIC ASSUMPTIONS AND
INTEGRATED ANALYSES NEEDED TO FULLY
ASSESS FORCE STRUCTURE AND
MODERNIZATION ALTERNATIVES
Our evaluation of the 1993 Bottom-Up Review and the 1997 QDR identified
limitations in DOD’s analytical approach to assessing defense needs and
opportunities to strengthen future review efforts.
1
1
Bottom-Up Review: Analysis of Key DOD Assumptions (GAO/NSIAD-95-56, Jan. 31, 1995) and
Quadrennial Defense Review: Opportunities to Improve the Next Review
(GAO/NSIAD-97-144,
June 25, 1998).
