DOD and FFRDC Facilities Receiving DOD Funding Have Varying Microelectronics Research and Production Focuses

At the time of our review, eight DOD and FFRDC facilities that received  funding from DOD were involved in microelectronics research prototyping  or production. Three military facilities focused solely on research; three  primarily focused on research but had limited production capabilities; and  two focused solely on production (see fig. For example, the  Naval Research Laboratory facility is conducting basic research on the  potential application of nonsilicon materials in microelectronic devices. Through its applied research, the Air Force Research Laboratory facility  developed a process to improve the performance and reliability of  microwave devices needed for military radar and communications  systems. When production of these devices was transferred to a commercial  supplier, the facility maintained capability to produce microelectronics as  a back-up to the commercial supplier. NSA’s microelectronics  facility focuses on producing cryptographic microelectronics—devices not  readily obtainable on the commercial market because of their unique and  highly classified requirements. DMEA fills a unique role within DOD by  providing solutions to microelectronics that are no longer commercially  available. DMEA acquires process lines that commercial firms are  abandoning and, through reverse-engineering and prototyping, provides  DOD with these abandoned devices. Officials from the facility told us  that without funds from the Trident program, operating the facility became  cost prohibitive. Further, NSA’s microelectronics facility is slated for  closure in 2006. NSA estimated that it would cost $1.7 billion to upgrade its  equipment and facility to produce the next generation of integrated  circuits. DOD Has Several Mechanisms for Coordinating Research

DOD has several mechanisms in place aimed at coordinating and planning  research conducted by the Air Force, Army, Navy, and defense agencies. In electronics and microelectronics research, DOD works with industry to  review special technology areas and make recommendations about future  research. DOD’s goal is to have about half of the  investment in service and agency efforts represented in defense  technology objectives. Defense technology objectives are intended to guide the focus of DOD’s  science and technology investments by identifying the following    objectives, the specific technology advancements that will be developed or    payoffs, the specific benefits to the warfighter resulting from the    challenges, the technical barriers to be overcome;   milestones, planned dates for technical accomplishments, including the  anticipated date of technology availability;    metrics, a measurement of anticipated results;   customers sponsoring the research; and funding that DOD estimates is needed to achieve the technology  advancements. There are 40 defense technology objectives in  this area; five were identified as microelectronics (see fig. To provide an independent assessment of the planned research, DOD uses  Technology Area Review and Assessment panels. Appendix I: Scope and Methodology

To identify and describe DOD and FFRDC facilities that receive funding  from DOD for microelectronics production or research prototyping, we  visited all eight facilities identified by DOD as having capability to produce  or prototype microelectronics.
Why GAO Did This Study

The Department of Defense's (DOD) ability to provide superior capabilities to the warfighter is dependent on its ability to incorporate rapidly evolving, cutting-edge microelectronic devices into its defense systems. While many commercial microelectronics advances apply to defense systems, DOD has some unique microelectronics needs not met by industry. Therefore, to maintain military superiority, DOD has the challenge of exploiting state-of-the-art commercial microelectronics technology and focusing its research investments in areas with the highest potential return for defense systems. Given the importance of advanced microelectronics to defense systems and the rapid changes in these technologies, Congress asked GAO to (1) identify and describe DOD and federally funded research and development center (FFRDC) facilities that receive funding from DOD for microelectronics production or research prototyping and (2) describe how DOD coordinates investments in microelectronics research.

What GAO Found

At the time of our review, eight DOD and FFRDC facilities that received funding from DOD were involved in microelectronics research prototyping or production. Three of these facilities focused solely on research; three primarily focused on research but had limited production capabilities; and two focused solely on production. The research conducted ranged from exploring potential applications of new materials in microelectronic devices to developing a process to improve the performance and reliability of microwave devices. Production efforts generally focus on devices that are used in defense systems but not readily obtainable on the commercial market, either because DOD's requirements are unique and highly classified or because they are no longer commercially produced. For example, one of the two facilities that focuses solely on production acquires process lines that commercial firms are abandoning and, through reverse-engineering and prototyping, provides DOD with these abandoned devices. During the course of GAO's review, one facility, which produced microelectronic circuits for DOD's Trident program, closed. Officials from the facility told us that without Trident program funds, operating the facility became cost prohibitive. These circuits are now provided by a commercial supplier. Another facility is slated for closure in 2006 due to exorbitant costs for producing the next generation of circuits. The classified integrated circuits produced by this facility will also be supplied by a commercial supplier. DOD has several mechanisms in place aimed at coordinating and planning research conducted by the military services and defense agencies. One key mechanism is identifying defense technology objectives--the specific technology advancements that will be developed or demonstrated across multiple joint capabilities and technology areas. As of February 2004, there were almost 400 defense technology objectives; five of these were identified as microelectronics. DOD also collaborates with industry to review and assess special technology areas and make recommendations about future electronics and microelectronics research.