Summary

This briefing report evaluates the Pentagon's fiscal year 1995 operation and maintenance budget, which funds everything from pilot training to spare parts. GAO reviewed selected operation and maintenance accounts for U.S. Army, Europe; U.S. Forces Command; U.S. Air Forces, Europe; Air Combat Command; Air Material Command; and the Atlantic and Pacific Fleets. GAO also reviewed selected accounts at the headquarters, Army, Navy, Air Force, and Defense activities. GAO concludes that the operation and maintenance request for fiscal year 1995 could be cut by $4.5 billion without affecting military readiness.

GAO found that: (1) the military services' and defense activities' O&M budget requests for FY 1995 could be reduced by about $4.5 billion; (2) the services and defense activities could realize O&M budget savings by improving inventory management and maintenance practices, terminating some unneeded programs, reducing many training requirements, and revising civilian personnel requirements; and (3) Congress could reduce the services' and defense activities' O&M budget requests by offsetting the services' profits and unneeded budget balances.