Most Key Aerostat and Airship Efforts Underway or Initiated Since 2007 Have Been Fielded or Completed

We identified 15 key aerostat and airship efforts that were underway or  had been initiated since 2007, and DOD had or has primary responsibility  for all of these efforts. Over the past 6 years, DOD’s overall  investment has increased, and the estimated total funding of these efforts  was almost $7 billion from fiscal years 2007 through 2012. However,  funding estimates for aerostat and airship efforts under development  beyond fiscal year 2012 decline significantly, although there is an  expectation that investment in the area will continue. However, according to DOD officials, investment in this area is expected  to continue in the future. Aerostat and Airship Efforts under Development Are Experiencing Technical Challenges

Three of the four aerostat and airship efforts under development, plus  another airship development effort that was terminated in June 2012,  have suffered from high acquisition risks because of significant technical  challenges, leading to cost overruns and schedule delays. DOD Has Provided Limited Oversight to Ensure Coordination of Its Aerostat and Airship Efforts

DOD has not provided effective oversight to ensure coordination of its  aerostat and airship development and acquisition efforts. Consequently,  these efforts have not been effectively integrated into strategic  frameworks, such as investment plans and roadmaps. At the time of our  review, DOD did not have comprehensive information on all its efforts nor  its entire investment in aerostats and airships. Additionally, DOD’s  coordination efforts have been limited to specific technical activities, as  opposed to having a higher level authority to ensure coordination is  effective. DOD has recently  taken steps to bolster oversight. Whether these steps are sufficient  largely depends on the direction DOD intends to take with aerostat and  airship programs. If it decides to make significant future investments in  efforts, more steps may be needed to shape these investments. As of August 2012, the Office of the Assistant Secretary  of Defense for Research and Engineering was defining the details relating  to the authority, scope, and responsibilities of this new position. If DOD decides to curtail future investment, focus on ensuring that it  has an inventory and knowledge of all current and planned efforts in  the short term. If DOD decides to significantly increase future investment, include  aerostat and airship capabilities in strategic frameworks to ensure  visibility into and coordination with relevant efforts, guide innovation,  and prioritize investments. Ensure the roles and responsibilities of the Assistant Secretary of  Defense for Research and Engineering, as the senior official  responsible for the oversight and coordination of various airship- related programs, are defined and commensurate with the level of  future investment. To determine how effectively the various key aerostat and airship efforts  are being overseen to ensure coordination, and identify any potential for  duplication, we assessed aerostat and airship investments, acquisitions,  capabilities, and operations by analyzing documents and interviewing  officials from the organizations listed above, analyzing the inventory of  key efforts developed under our first objective, and reviewing prior GAO  work for relevant criteria.
Why GAO Did This Study

Use of lighter-than-air platforms, such as aerostats, which are tethered to the ground, and airships, which are freeflying, could significantly improve U.S. ISR and communications capabilities, and move cargo more cheaply over long distances and to austere locations. DOD is spending about $1.3 billion in fiscal year 2012 to develop and acquire numerous aerostats and airships.
GAO was asked to determine (1) what key systems governmentwide are being developed and acquired, including funding, purpose, and status; (2) any technical challenges these key efforts may be facing; and (3) how effectively these key efforts are being overseen to ensure coordination, and identify any potential for duplication. To address these questions, GAO reviewed and analyzed documentation and interviewed a wide variety of DOD and civil agency officials.

What GAO Found

GAO identified 15 key aerostat and airship efforts that were underway or had been initiated since 2007, and the Department of Defense (DOD) had or has primary responsibility for all of these efforts. None of the civil agency efforts met GAO's criteria for a key effort. Most of the aerostat and airship efforts have been fielded or completed, and are intended to provide intelligence, surveillance, and reconnaissance (ISR) support. The estimated total funding of these efforts was almost $7 billion from fiscal years 2007 through 2012. However, funding estimates beyond fiscal year 2012 decline precipitously for aerostat and airship efforts under development, although there is an expectation that investment in the area will continue.
Three of the four aerostat and airship efforts under development, plus another airship development effort that was terminated in June 2012, have suffered from high acquisition risks because of significant technical challenges, such as overweight components, and difficulties with integration and software development, which, in turn, have driven up costs and delayed schedules.
DOD has provided limited oversight to ensure coordination of its aerostat and airship development and acquisition efforts. Consequently, these efforts have not been effectively integrated into strategic frameworks, such as investment plans and roadmaps. At the time of GAO's review, DOD did not have comprehensive information on all its efforts nor its entire investment in aerostats and airships. Additionally, DOD's coordination efforts have been limited to specific technical activities, as opposed to having a higher level authority to ensure coordination is effective. DOD has recently taken steps to bolster oversight, including the appointment of a senior official responsible for the oversight and coordination of airship-related programs. However, as of August 2012, DOD has not defined the details relating to the authority, scope, and responsibilities of this new position. Whether these steps are sufficient largely depends on the direction DOD intends to take with aerostat and airship programs. If it decides to continue investing in efforts, more steps may be needed to shape these investments.

What GAO Recommends

GAO recommends that DOD take actions based on the extent of its future investments in this area: (1) if investments are curtailed, ensure it has insight into all current and planned efforts in the short term; (2) if investments increase significantly, include the efforts in strategic frameworks to ensure visibility and coordination, guide innovation, and prioritize investments; and (3) ensure the roles and responsibilities of the senior official responsible for the oversight and coordination of airshiprelated programs are defined. DOD concurred with the recommendations.