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NSIAD-93-91R 1 (1992-12-03)

handle is hein.gao/gaobacken0001 and id is 1 raw text is: United States GAO General Accounting Office National Security and International Affairs Division B- 247984 December 3, 1992 148096 The Honorable Sam Nunn Chairman The Honorable John W. Warner Ranking Minority Member Committee on Armed Services United States Senate The Honorable Les Aspin Chairman The Honorable William L. Dickinson Ranking Minority Member Committee on Armed Services House of Representatives Enclosed are comments by the Department of Defense on our report entitled AV-8B Program: Aircraft Sales to Foreign Government to Fund Radar Procurement (GAO/NSIAD- 93-24), which was issued on October 23, 1992. These comments were received after the 30 calendar days specified by law and were too late to be printed in our report. Thus, we are enclosing the comments for your consideration along with our responses to the comments. The Department continues to maintain that the sale of two TAV-8Bs to Italy and the Navy's use of the sale proceeds was a replacement-in-kind transaction based on applicable laws and regulations. It does not acknowledge that the two aircraft were not replaced. However, as we reported, the sale proceeds were not used to purchase replacement aircraft as required by federal law. As a result of the TAV-8B sale, the Marine Corps will have two fewer aircraft. The two aircraft that the Navy states are the replacement aircraft were already fully funded with appropriations and under contract before the initiation of the TAV-8B sale. For these reasons we recommended that the Secretary of Defense direct that an amount equal to the proceeds from the sale of two TAV-8Bs to Italy, $44.4 million, be deposited in the Special Defense Acquisition Fund or if the fund is at its statutory ceiling, in the Treasury as miscellaneous receipts. Nothing in the Department's comments causes us to change this recommendation. GAO/NSIAD-93-91R AV-8B Program Ca