This report describes the basic elements and issues of the Department of Defense's (DOD) Research, Development, Test and Evaluation (RDT & E) Program. It defines basic activities supported by the program, presents budget trends, discusses the management of program, and describes the infrastructure in which the program is implemented. This report is for staff new to the area of defense research and for senior staff interested in historical trends. This report will be updated periodically. For tracking Congressional action on the current year's budget, the reader is referred to the Issue Brief entitled Defense Research: DOD s Research, Development, Test and Evaluation (RDT & E) Program, by the same author.

The Department of Defense (DOD) asked Congress for $73.2 billion in fiscal year 2007 for research, development, testing, and evaluation (RDT&E). DOD organized this request using program element (PE) codes, which are designed to convey key information about the budget request. DOD also provides documents called budget exhibits detailing the activities for which funds are being requested. The National Defense Authorization Act for Fiscal Year 2006 mandated that GAO examine the program elements and budget exhibits. GAO assessed (1) whether the RDT&E program element code structure and the associated budget exhibits provide accurate, consistent, complete, and clear information, and (2) what factors contribute to any problems found. In conducting this review GAO analyzed all of the fiscal year 2007 program element codes and 47 budget exhibits. GAO also interviewed key DOD officials.

During the past decade and a half, the National Research Council, through its Committee on National Statistics, has carried out a number of studies on the application of statistical methods to improve the testing and development of defense systems. These studies were intended to provide advice to the Department of Defense (DOD), which sponsored these studies. The previous studies have been concerned with the role of statistical methods in testing and evaluation, reliability practices, software methods, combining information, and evolutionary acquisition. Industrial Methods for the Effective Testing and Development of Defense Systems is the latest in a series of studies, and unlike earlier studies, this report identifies current engineering practices that have proved successful in industrial applications for system development and testing. This report explores how developmental and operational testing, modeling and simulation, and related techniques can improve the development and performance of defense systems, particularly techniques that have been shown to be effective in industrial applications and are likely to be useful in defense system development. In addition to the broad issues, the report identifies three specific topics for its focus: finding failure modes earlier, technology maturity, and use of all relevant information for operational assessments.

The Department of Defense (DOD) supports basic research to advance fundamental knowledge in fields important to national defense. Over the past six years, however, several groups have raised concern about whether the nature of DOD-funded basic research is changing. The concerns include these: Funds are being spent for research that does not fall under DOD's definition of basic research; reporting requirements have become cumbersome and onerous; and basic research is handled differently by the three services. To explore these concerns, the Congress directed DOD to request a study from the National Research Council (NRC) about the nature of basic research now being funded by the Department. Specifically the NRC was to determine if the programs in the DOD basic research portfolio are consistent with the DOD definition of basic research and with the characteristics associated with fundamental research.