Keeping Programs in the Black

By Jacob V. Lamar Jr.

Because of its shape and magic electronic gadgetry, the proposed Stealth bomber is supposed to be all but invisible to enemy radar. Fittingly enough, the supersecret project has been funded with stealth as well: its budget is all but invisible even to the Congressmen who must approve military funding. In Pentagon parlance, the bomber is one of the rapidly growing number of "black" programs. Because the programs are classified at levels above top secret, only a few select congressional committee members and a handful of staffers are allowed to analyze the numbers or even know the purpose of such budget items.

Black programs show up in the defense budget under such cryptic code names as Link Hazel and Dreamland, and receive funds without the ordinary congressional review. Current projects, according to those who have peeked behind the veil, run the gamut from Grass Blade, designed to develop an air-defense system for intercepting low-flying helicopters, to Pilot Fish, aimed at placing transmitters on the ocean floor to pick up sonar data and transmit it to antisubmarine warfare craft. Under Secretary of Defense for Research and Engineering Donald Hicks says that black budgeting is necessary "because a government as open as ours needs some way to protect certain programs from public disclosure."

While most Congressmen acknowledge this need, some are trying to bring black programs under closer scrutiny. Last week a House Armed Services panel met twice to grill Defense officials on the management of the clandestine projects. One reason for the concern is the astounding growth of the programs during the Reagan Administration. According to an analysis of the Pentagon budget by the National Journal, black budgets for researching, developing and procuring secret weapons increased from a mere $892 million in 1981 to $8.6 billion for the up-coming fiscal year. Legislators are concerned that major strategic and budgetary decisions are being made without proper discussion. Under pressure two weeks ago, the Pentagon said that the cost of the Stealth bomber would be no more than 2% or 3% higher than that of the military's most recent long-range bomber, the B-1B. But according to Oklahoma Congressman Mike Synar, Stealth may cost as much as $600 million a copy, twice the nearly $300 million current price of a B-1B.

Critics of black programs charge that they are often so designated to circumvent the usual competitive procurement procedures. Even a Pentagon panel that issued a report last year titled Keeping the Nation's Secrets concluded that programs could be designated black for reasons other than national security. That can lead to some anomalous situations: the Air Force and Navy will jointly develop versions of an advanced-technology fighter plane, and though the Air Force openly states that its version will cost $35 million apiece, the Navy is keeping its figures under wraps. Yet Senator Barry Goldwater, who has become increasingly critical of some Pentagon practices, has argued that black programs undergo "far more scrutiny and review than 'white' programs with comparable budgets."

So far, the most aggressive assault on black programs comes from the House Energy and Commerce Committee, which has requested a detailed rundown of the Air Force's supersecret projects. The Pentagon is trying to cut a deal with the lawmakers to avoid a full disclosure. "There are a large number of the programs," says Secretary of Defense Caspar Weinberger. "They will, we think, give us an advantage. And the way to maintain that advantage is not to talk very much about them." --By Jacob V. Lamar Jr. Reported by Michael Duffy and Bruce van Voorst/Washington

With reporting by Reported by Michael Duffy and Bruce van Voorst/Washington