Because the Army has had a series of contracts with Duke University under which the services of scientists were obtained whose pay often exceeded the daily equivalent of the highest GS salary rate, the Chairman of the House Committee on Appropriations requested the GAO to review the Army-Duke contracts, and other contractual arrangements of the military services for employing experts and consultants through outside organizations. Chapter I of the report discusses the authorization for Department of Defense (DOD) contracts with outside agencies. Chapter 2 discusses the Army contracts with Duke University, the services performed by the experts, how the scientists were obtained, the determination of pay rates, and other issues related to payment and fees. Chapter 3 examines the limited use of contracts with outside organizations by the Departments of the Navy and Air Force. Chapter 4 explores the DOD's reasons for using Army-Duke type of contractual arrangements. Chapter 5 deals with the rates paid to all defense-science advisory committee members, which often are not the maximum allowed, whereas, according to Chapter 6, most rates paid by DOD contractors exceeded the authorized rates. (AF)