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GAO DEFENSE ACQUISITIONS Assessments of Selected Weapon Programs

GAO DEFENSE ACQUISITIONS Assessments of Selected Weapon Programs

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Published by Peggy Satterfield
This is GAO’s annual assessment of DOD weapon system acquisitions, anarea that has been on GAO’s high-risklist for more than 20 years. The reportresponds to the mandate in the jointexplanatory statement to the DODAppropriations Act, 2009.
This is GAO’s annual assessment of DOD weapon system acquisitions, anarea that has been on GAO’s high-risklist for more than 20 years. The reportresponds to the mandate in the jointexplanatory statement to the DODAppropriations Act, 2009.

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Published by: Peggy Satterfield on Mar 31, 2013
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GAO
United States Government Accountability Office
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Report to Congressional Committees
March 2013
DEFENSE ACQUISITIONS Assessments of Selected WeaponPrograms
 
United States Government Accountability Office
Highlights of  GAO-13-294SP,a report to congressional committees
March 2013
DEFENSE ACQUISITIONS
 Assessments of Selected Weapon Programs
 Why GAO Did This Study 
 This is GAO’s annual assessment of DOD weapon system acquisitions, anarea that has been on GAO’s high-risklist for more than 20 years. The reportresponds to the mandate in the jointexplanatory statement to the DODAppropriations Act, 2009. It includesobservations on (1) the cost andschedule performance of DOD’s 2012portfolio of 86 major defenseacquisition programs, including theMissile Defense Agency’s BallisticMissile Defense System; (2) theknowledge attained at key junctures inthe acquisition process for 40 majordefense acquisition programs thatwere selected because they were indevelopment or early production; and(3) key acquisition reform initiativesand program concurrency. Majordefense acquisition programs areDOD’s costliest weapon systemdevelopment and procurementprograms. To develop the observations, GAOanalyzed cost, schedule, and quantitydata from DOD’s Selected AcquisitionReports and collected data fromprogram offices on technology, design,and manufacturing knowledge; the useof knowledge-based acquisitionpractices; and the implementation of DOD’s acquisition policy andacquisition reforms.In commenting on a draft of this report,DOD agreed that the cost reductions inits portfolio over the past year werelargely due to exiting programs andreductions in procurement quantities.However, DOD stated that the metricsused did not adequately addressprogram performance or answer thequestions of when, why, and howchanges occurred. GAO believes thereport addresses these concerns.
 What GAO Found
 The Department of Defense (DOD) 2012 portfolio of 86 major defense acquisitionprograms is estimated to cost a total of $1.6 trillion, reflecting decreases in bothsize and cost from the 2011 portfolio. Those decreases are largely the result of more programs exiting than entering the portfolio, as well as reductions inprocurement quantities due to program cancelations and restructurings. Notablya majority of programs in the portfolio gained buying power in the last year astheir acquisition unit costs decreased. DOD’s 10 costliest programs, excludingthe Missile Defense Agency’s Ballistic Missile Defense System (BMDS), drivemost of the portfolio’s cost performance and funding needs. The majority (65percent) of the funding that DOD estimates it will need to complete its currentprograms is associated with those 10 programs, and almost all of that funding isfor procurement (see figure).
Proportions of Future Funding within DOD’s Acquisition Portfolio (excluding BMDS)
Continuing a positive trend over the past 4 years, newer acquisition programs aredemonstrating higher levels of knowledge at key decision points, although manyprograms are still not fully adhering to a knowledge-based acquisition approach.Of the 32 programs that provided GAO with technology maturity, 5 reached fullmaturity while another 14 were near maturity when they began development.Four of the 5 programs with fully mature technologies started in the last 5 years.Less than one-third of the programs providing design data achieved designstability at their critical design review. Many of the programs are capturing criticalmanufacturing knowledge prior to production, but their methods vary.Implementation of key selected acquisition initiatives varies among the programsGAO assessed, and programs continue to accept risks associated withconcurrently conducting developmental testing and production. Many of theprograms reported that they had established affordability requirements and notedthat they were meeting those requirements. Most programs in this year’sassessment have also conducted “should cost” analyses, and have identifiedcost savings as a result. Most programs GAO assessed reported that they hadcompleted or planned to complete development testing while in production, aapproach that risks costly retrofits of systems already built and fielded.
View GAO-13-294SP.For more information contact Michael J. Sullivan at (202) 512-4841or sullivanm@gao.gov. 
 
Page iGAO-13-294SP Assessments of Selected Weapon Programs
 
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