DoD Releases Selected Acquisition Reports
April 05, 2004
The Department of Defense has released details on major defense acquisition program cost and schedule changes since the September 2003 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the Dec. 31, 2003 reporting period.
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 (September 2003) was $1,246,878.1 million. After adding the costs for a new program, Warfighter Information Network-Tactical (WIN-T), and subtracting the costs for a final report on Global Combat Support System Army (GCSS Army) in September 2003, the adjusted current estimate of program acquisition costs was $1,257,229.2 million.
For the December 2003 reporting period, there was a net cost increase of $73,090.4 million or +5.8 percent for those programs that have reported previously, excluding costs for the programs submitting initial SARs. For this submission, the initial SAR programs are Cobra Judy Replacement, Multi-Platform Radar Technology Insertion Program (MP-RTIP), and Small Diameter Bomb (SDB).
| Current Estimate
($ in Millions) |
|||
| September 2003 (77 programs) | $ 1,246,878.1 | ||
| Plus one new program (WIN-T) | +12,040.5 | ||
| Less final report on GCSS Army program | -1,689.4 | ||
| September 2003 Adjusted (77 programs) | $ 1,257,229.2 | ||
| Changes Since Last Report: | |||
| Economic | $+7,398.0 | ||
| Quantity | +8,435.8 | ||
| Schedule | +14,030.1 | ||
| Engineering | +4,610.2 | ||
| Estimating | +31,327.2 | ||
| Other | +0.0 | ||
| Support | +7,289.1 | ||
| Net Cost Change | $+73,090.4 | ||
| Plus EA-18G development costs not previously reported
(EA-18G is a submitting a separate initial SAR. Procurement costs were previously reported in the F/A-18E/F SAR, but development costs for the EA-18G are being reported for the first time.) |
+1,707.6 | ||
| December 2003 (78 programs) | $1,332,027.2 | ||
For the December 2003 reporting period, there was a net cost increase of $73 billion or +5.8 percent for programs that have reported previously, excluding costs for the aforementioned programs submitting initial SARs. The net cost increase was due to higher program estimates (+$31.3 billion), a net stretch-out of development and procurement schedules (+$14.0 billion), a net increase of planned quantities to be purchased (+$8.4 billion), the application of higher escalation indices (+$7.4 billion), higher support costs related to increased quantities (+$7.3 billion), and additional engineering changes (hardware/software) (+$4.6 billion).
New SARs
(As of December 31, 2003)
The Department of Defense has submitted initial SARs for Cobra Judy Replacement, Multi-Platform Radar Technology Insertion Program, and Small Diameter Bomb. These reports do not represent cost growth. Baselines established on these programs will be the point from which future changes will be measured. The current cost estimates are provided below:
| Program | Current Estimate
($ in Millions) |
| Cobra Judy Replacement | $ 1,474.5 |
| Multi Platform Radar Technology Insertion Program (MP RTIP) | 1,565.6 |
| Small Diameter Bomb | 1,816.5 |
| Total | $ 4,856.6 |
More detailed information on the most recent SARs can be found by clicking http://www.defense.gov/news/Apr2004/d20040405sar.pdf.