The Department of Defense has released details on major defense acquisition program cost and schedule changes since the June 2003 reporting period. This information is based on the Selected Acquisition Reports (SARs) can be viewed at submitted to the Congress for the Sept. 30, 2003, reporting period. This report can be viewed at: http://www.dod.mil/news/Nov2003/d20031118sar.pdf.
SARs summarize the latest estimates of cost, schedule, and technical status. These reports are prepared annually in conjunction with the President's budget. Subsequent quarterly exception reports are required only for those programs experiencing unit cost increases of at least 15 percent or schedule delays of at least six months. Quarterly SARs are also submitted for initial reports, final reports, and for programs that are rebaselined at major milestone decisions.
The total program cost estimates provided in the SARs include research and development, procurement, military construction, and acquisition-related operation and maintenance (except for pre-Milestone B programs which are limited to development costs pursuant to 10 USC §2432). Total program costs reflect actual costs to date as well as future anticipated costs. All estimates include anticipated inflation allowances.
The current estimate of program acquisition costs for programs covered by SARs for the prior reporting period (June 2003) was $1,135,706.5 million. After adding the costs for new programs that were reported in the June 2003 reporting period (listed below), the adjusted current estimate of program acquisition costs was $1,246,366.3 million. There was a net cost increase of $511.8 million (+0.04 percent) during the current reporting period (September 2003). This increase was due to the reallocation of seven EELV (Evolved Expendable Launch Vehicle) missions from Boeing to Lockheed Martin as a result of the Procurement Integrity Act remedy and increased prices on the EELV Buy II mission awards.
| |
Current Estimate
($ in Millions) |
| |
| June 2003 (73 programs) |
$1,135,706.5 |
| |
| Plus four new programs (FCS, AGM-88E, ASDS, and E-2 AHE) |
+110,659.8 |
| June 2003 Adusted (77 programs) |
$1,246,366.3 |
| Changes Since Last Report: |
|
| |
Economic |
$0.0 |
| |
Quantity |
0.0 |
| |
Schedule |
$0.0 |
| |
Engineering |
$0.0 |
| |
Estimating |
+511.8 |
| |
Other |
$0.0 |
| |
Support |
$0.0 |
| |
| September 2003 (77 programs) |
$ 1,246,878.1 |
For the September 2003 reporting period, there were quarterly exception SARs submitted for four programs (GCSS ARMY, WIN-T, EELV, and SBIRS HIGH). The reasons for the submissions are provided below.
Army:
GCSS (Global Combat Support System) ARMY - The SAR was submitted to close-out reporting due to removal of GCSS Army from the Major Defense Acquisition Program (MDAP) list. The developmental approach for the program was restructured to take advantage of the latest commercial-off-the-shelf technology. SAR reporting will resume at System Development and Demonstration (Milestone B), currently planned for May 2005. No cost changes were reported.
WIN-T (Warfighter Information Network - Tactical) - An initial SAR was submitted for WIN-T following approval of System Development and Demonstration (Milestone B) in August 2003.
Air Force:
EELV (Evolved Expendable Launch Vehicle) - The SAR was submitted to report a schedule slip of 10 months (from September 2003 to July 2004) in the Operational Launch Service Demonstration for the Heavy Lift Vehicle (HLV). This delay was due to the downstream impact of Government launches being prioritized to meet warfighter needs, slips in the launch dates of the first three Delta IV missions, and significant modifications to the Complex 37B launch pad to accommodate the HLV launch. Program costs increased $511.8 million (+2.5 percent) from $20,284.5 million to $20,796.3 million, due to the reallocation of seven missions from Boeing to Lockheed Martin as a result of the Procurement Integrity Act remedy (+$223.8 million) and increased prices on the Buy II mission awards (+$288.0 million).
SBIRS (Space Based Infrared System) HIGH - The SAR was submitted to report schedule slips of nine months (from May 2003 to February 2004) for the Highly Elliptical Orbit (HEO) Sensor 1 Delivery and 10 months (from November 2004 to September 2005) for the HEO Message Certification. HEO Sensor 1 Delivery has slipped due to a series of design deficiencies, technical issues identified during final performance testing, and problems meeting the Electromagnetic Interference specification. HEO Message Certification delays are due to the late delivery of the HEO 1 sensor payload and launch delays. No cost changes were reported.
New SAR
(As of September 30, 2003) The Department of Defense has submitted an initial SAR for WIN-T (Warfighter Information Network - Tactical). This report does not represent cost growth. The baseline established on this program will be the point from which future changes will be measured. The current cost estimate is provided below:
| |
Program |
|
Current Estimate
($ in Millions) |
| |
WIN-T (Warfighter Information Network - Tactical) |
|
$ 12,040.5 |
