GAO urges DOD to tighten communication and oversight of international agreements

GAO's latest review found that from fiscal years 2021 through 2025 the Department of Defense established 303 acquisition-related international arrangements with an associated dollar value of $64 billion. Both the number of arrangements and their total value declined during that period, a trend officials linked to personnel shortages and protracted review and approval timelines.

Coordination among Under Secretary of Defense-level offices - Acquisition and Sustainment, the Office of General Counsel, and Policy - is described as generally effective. However, communication of key policy changes, such as revisions to cost-sharing requirements, to the military departments has been inconsistent. Departments reported having to adjust and renegotiate multiple agreements, and some foreign partners withdrew entirely.

GAO recommends that the Secretary of Defense require the Under Secretary of Defense for Acquisition and Sustainment and the Office of General Counsel to establish a mechanism that ensures timely communication of policy and procedural changes to military departments and other stakeholders. A second recommendation calls for USD(A&S) to implement a systematic, proactive approach - based on the six essential elements of GAO's tailored enterprise risk-management framework - to manage challenges associated with acquisition-related international arrangements.

Both recommendations are listed as open, and DOD has formally concurred. The agency has identified actions intended to improve internal communication and oversight, but GAO will update the status once DOD's implementation steps are verified.

The GAO report underscores that a more systematic approach could help DOD meet strategic goals for cost-sharing, strengthen the defense industrial base, and reduce rework, wasted effort, and unnecessary costs.