Why It Matters

The Department of Defense established 303 acquisition-related international arrangements valued at $64 billion between fiscal years 2021 and 2025, according to a GAO report published August 6. Both the number and dollar value of arrangements declined over that period. The report says DOD has not built the institutional infrastructure needed to manage these partnerships effectively, and its approach to addressing challenges has been ad hoc and reactive.

The decline in arrangements matters because DOD relies on these partnerships to cooperatively develop weapon systems with foreign partners and to secure access to parts, technologies, and other resources for its defense industrial base.

Internal communication failures have had direct consequences. When Under Secretary of Defense (USD) offices changed the application of cost-sharing requirements, they communicated those changes on an agreement-by-agreement basis rather than broadly. Military department officials said they were forced to adjust and renegotiate multiple arrangements as a result. Some foreign partners opted out of arrangements entirely.

The coordination breakdown is not uniform across DOD. Officials told GAO that coordination among the three USD-level offices involved, namely the Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)), the Office of General Counsel, and the Office of Policy, was working relatively well apart from occasional difficulties. The gap is between those USD-level offices and the military departments, where timely communication about key policy changes has repeatedly failed.

DOD officials attributed the broader decline in arrangements to personnel shortages and lengthy review and approval timelines. GAO found the department has not fully identified or responded to the underlying challenges, and its management approach has been ad hoc and reactive.

Broader Context

A Senate report provision directed GAO to review DOD's coordination for international arrangements. The Senate Committee on Appropriations' fiscal year 2026 Defense Senate Report is publicly available and is consistent with the type of provision cited.

GAO's review examined data trends for selected arrangements from fiscal years 2021 through 2025, assessed the extent to which DOD offices coordinate and communicate regarding these arrangements, and it evaluated DOD's approach to identifying and addressing challenges. GAO analyzed military department data, reviewed relevant statutes, regulations, and DOD policies, and interviewed DOD officials.

The Bottom Line

GAO made two recommendations, both directed to the Secretary of Defense. The first requires the Secretary to direct the USD(A&S) and the DOD Office of General Counsel to establish a mechanism ensuring timely communication with military departments and other stakeholders about key policy and procedure changes for acquisition-related international arrangements.

The second requires the Secretary to direct USD(A&S) to implement a systematic, proactive approach, one that incorporates the six essential elements of GAO's tailored enterprise risk management framework, for managing challenges with these arrangements. A more systematic approach could help DOD meet its strategic goals for cost-sharing and defense industrial base improvements, while reducing rework, wasted effort, and costs. USD(A&S) could also use available data to better leverage resources and improve oversight.

DOD concurred with both recommendations and identified actions to improve internal communication and oversight. Both recommendations remain open, meaning required actions have not yet been taken or are still being planned.

---

Spot something wrong? Report an issue with this article