Washington, D.C. - A new General Accounting Office (GAO) report raises serious questions about the costs and benefits of the Airborne Laser (ABL) program. The GAO report, "Cost Increases in the Airborne Laser Program" (GAO-04-643R)(www.gao.gov), requested by U.S. Senators Daniel K. Akaka (D-Hawaii) and Bill Nelson (D-FL), examined the Missile Defense Agency's (MDA) Airborne Laser program and the reasons why this eight-year program has experienced significant cost and schedule delays. The GAO found that the prime contractor's cost for developing ABL has nearly doubled from the Air Force's original estimate and additional cost growth is occurring because the program did not adequately plan for, and could not anticipate the complexities of the system. GAO also found that predictions of the military utility of the ABL aircraft are highly uncertain.

"The General Accounting Office's findings are truly astounding," said Senator Akaka. "They call into question whether or not it makes sense for Congress to continue funding this program at the requested level - especially in this era of tight budgets."

In regard to the program's cost, GAO concluded:

• the prime contract's cost has increased by about $1 billion since 1996;
• in FY03 the cost overrun was $242 million;
• the prime contract could overrun budgeted costs at completion by $431 million to $943 million.

"There may be $2 billion in cost overruns before we get to the first operational test of the system," Akaka noted, "with no clear understanding of how much this program is going to cost by completion. In addition, the military utility of the aircraft is at best highly uncertain."

The General Accounting Office study found that the ABL program was based initially on an overly optimistic engineering assessment that underestimated technology and integration problems. The volume of testing required for hundreds of first-of-their-kind components was never anticipated. Originally, the MDA said it would demonstrate the laser's lethality by testing its ability to shoot down a missile in fiscal year 2005, but according to its FY05 budget request, MDA now predicts a demonstration by the "earliest possible date."

"The ABL program should not be in an acquisition phase but should be a technology demonstration project," observed Senator Akaka.

In 2001, as chairman of the Senate Governmental Affairs Subcommittee on International Security, Proliferation, and Federal Services, Senator Akaka held hearings into missile threats. This is the third report completed for him on missile defense issues.