(NOTE: The DoD Selected Acquisition Reports summarize the
latest estimates of cost, schedule, and technical status. These
reports are prepared annually for Congress 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/restructured.
Below is a SAR summary, summary narratives of significant
SAR cost changes for this period and a
SAR program acquisition cost summary. News media queries regarding
overall SAR policy should be directed to Lt. Col. Joan Ferguson, Directorate
for Defense Information, (703) 695-0192. For system specific
questions, contact the appropriate Military Department Public
Affairs office. BMDO contact is Maj. Monica Aloisio, Directorate
for Defense Information, (703) 697-5131.)
The Department of Defense has released details on major
defense acquisition program cost and schedule changes since the
December 1995 reporting period. This information is based on the
Selected Acquisition Reports (SARs) submitted to the Congress for
the March 31, 1996, reporting period.
The total program cost estimates provided in the SARs
include research and development, procurement, and military
construction. Total program costs reflect actual costs to date
as well as anticipated costs for future efforts. All estimates
include allowances for anticipated inflation.
The current estimate of program acquisition costs for
programs covered by SARs for the prior reporting period (December
1995) was $714,482.2 million. After subtracting the costs for
terminated reports and adding the costs for new programs, the
December 1995 adjusted current estimate of program acquisition
costs was $699,440.8 million. There was a net increase of
$2,367.3 million during the current reporting period (March
1996). The cost changes between December 1995 and March 1996 are
summarized below:
Current Estimate
($ in Millions)
December 1995 (73 programs*) $ 714,482.2
Less four terminated reports (MLRS, JTUAV, -23,925.5
TRIDENT II SUB, and JTIDS)
Plus one new program (ATIRCM/CMWS) and one new
component of existing SAR (JSOW UNITARY VARIANT)+8,884.1
December 1995 Adjusted (70 programs*) $ 699,440.8
Changes Since Last Report:
Economic $ -3.2
Quantity 0.0
Schedule +563.6
Engineering +493.6
Estimating +546.0
Other +708.9
Support +58.4
Net Cost Change $ +2,367.3
March 1996 (70 programs*) $701,808.1
*Excludes classified costs for the Air Force's MILSTAR program.
For the March 1996 reporting period, exception SARs were
submitted for PATRIOT PAC-3 and THAAD to report revised total
program cost estimates to the Congress. The December 1995 SARs
for these programs did not include cost estimates beyond FY 2001.
DoD:
PATRIOT PAC-3 (PATRIOT Advanced Capability) -- Program costs
increased $1,354.1 million (+23.0%) from $5,899.3 million to
$7,253.4 million, due primarily to a revised estimate associated
with restructure of missile procurement ($+519.2 million),
restructure of the upgrade program to include Enhanced Launcher
Electronics System and Fire Solution Computer ($+282.2 million),
and modification of three battalions associated with radar
integration deferred beyond FY 2001 ($+210.0 million); the
inclusion of initial spares for Ballistic Missile Defense
Organization (BMDO)-procured items ($+133.4 million); program
adjustments due to lethality, targets and test requirements
($+115.2 million); and a revised annual procurement buy profile
($+92.4 million).
THAAD (Theater High Altitude Area Defense) -- Program costs
increased $1,013.2 million (+20.5%) from $4,947.2 million to
$5,960.4 million, due primarily to a revised estimate associated
with a three-year extension of R&D (i.e., FY 2002-FY 2004)
resulting from the BMDO Program Review restructure ($+948.1
million) and modification of lethality, target and Operational
Test & Evaluation program requirements ($+67.2M).
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