Department of Defense News Release (April 9, 2007): department of defense releases Selected Acquisition Reports.The Department of Defense has released details on major defense acquisition program cost, schedule, and performance changes since the September 2006 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the December 2006 reporting period. SARs summarize the latest estimates of cost, schedule, and performance 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 operations and maintenance (except for pre-Milestone B programs, which are limited to development costs pursuant to 10 USC An abbreviation for U.S. Code. [section]2432). Total program costs reflect actual costs to date as well as future anticipated costs. All estimates include anticipated inflation allowances. The current estimate (shown at the top of the next page) represents program acquisition costs for programs covered by SARs for the prior reporting period (September 2006) was $1,617,710.1 million. After adding the costs for two new programs, Longbow longbow Leading missile weapon of the English from the 14th century into the 16th century. Probably of Welsh origin, it was usually 6 ft (2 m) tall and shot arrows more than a yard long. Apache Block III and the Light Utility Helicopter (LUH LUH Light Utility Helicopter (Army) ) from the September 2006 reporting period, the adjusted current estimate of program acquisition costs was $1,627,687.0 million. For the December 2006 reporting period, there was a net cost increase of $56,286.8 million or + 3.5 percent, excluding costs for the aforementioned programs submitting initial SARs. The net cost increase was due to a net stretchout of development and procurement schedules (+ $22,644.8 million), higher program cost estimates (+ $18,888.6 million), an increase in support requirements (+ $14,381.7 million), the application of higher escalation rates (+ $6,957.0 million), additional engineering changes (hardware/software) (+ $3,188.4 million), and the impacts on LPD See LPR/LPD. 17 from Hurricane Katrina (+ $1,075.6 million). These increases were partially offset by a net decrease of planned quantities to be purchased (-$7,454.6 million) and the termination of the Land Warrior program (-$3,394.7 million). Further details of the most significant changes are summarized below by program. There are eight programs with Nunn-McCurdy unit cost breaches to their "current" or "original" acquisition program baselines (APBs): C-130 Avionics Modernization Program (AMP), Expeditionary Fighting Vehicle The Expeditionary Fighting Vehicle (EFV) is the newest USMC amphibious vehicle, intended for deployment in 2015.<ref name="NAVWAR" /> It was renamed from the Advanced Amphibious Assault Vehicle in late 2003. The USMC wants 1,013 AAAV's by 2015. (EFV EFV Expeditionary Fighting Vehicle EFV Electronic Viewfinder EFV Enhanced Fixed Variable (rate) EFV Electric-Field-Variant Function ), Force XXI Battle Command Brigade and Below Program (FBCB FBCB Force XXI Battle Command Brigade (US Army) FBCB Fixed Bed Circulating Bioreactor 2), Guided Multiple Launch Rocket System (GMLRS GMLRS Guided Multiple Launch Rocket System ), Joint Air-to-Surface Standoff Missile (JASSM JASSM Joint Air-to-Surface Standoff Missile ), Joint Primary Aircraft Training System Joint Primary Aircraft Training System, usually just called JPATS, was an aircraft procurement program of the United States in the 1990s by the USAF and USN, a merger of 1980s era training aircraft programs. (JPATS JPATS Joint Primary Aircraft Training System JPATS Justice Prisoner and Alien Transportation Service (US Department of Justice) ), Land Warrior, and Warfighter Information Network-Tactical (WIN-T WIN-T Warfighter Information Network-Tactical WIN-T Warfighter Information Network - Terrestrial ). That is, the program acquisition or average procurement unit costs for these programs have increased by 15 percent or more to their "current" APB APB See Accounting Principles Board (APB). or by 30 percent or more to their "original" APB. For those programs that have increased by 25 percent or more to their "current" APB or by 50 percent or more to their "original" APB (i.e., C-130 AMP, EFV, GMLRS, JASSM, JPATS, Land Warrior, and WIN-T), a determination of whether to certify the programs will be made no later than June 5, 2007, except Land Warrior, which will not require certification because the program was terminated. New SARs (As of December 2006) The Department of Defense has submitted initial SARs for the following programs for the December 2006 reporting period. These reports do not represent cost growth. Baselines established on these programs will be the point from which future changes will be measured. Summary Explanations of Significant SAR (Segmentation And Reassembly) The protocol that converts data to cells for transmission over an ATM network. It is the lower part of the ATM Adaption Layer (AAL), which is responsible for the entire operation. See AAL. SAR - segmentation and reassembly Cost Changes As of Dec. 31, 2006 Army ARH ARH Agence Régionale de l'Hospitalisation ARH Art History ARH Armed Reconnaissance Helicopter ARH Adolescent Reproductive Health ARH Autosomal Recessive Hypercholesterolemia ARH Appalachian Regional Hospital ARH Appalachian Regional Healthcare, Inc. (Armed Reconnaissance Helicopter An armed reconnaissance helicopter is a light helicopter armed for self defense and rudimentary combat abilities. It can refer to any of the following.
FCS FCS - Frame Check Sequence (Future Combat System) -- Program costs decreased $2,698.2 million (-1.6 percent) from $164,628.3 million to $161,930.1 million, due primarily to the program adjustments that deferred the Class II and Class III Unmanned Aerial Vehicles
(2) (Information Management System) An early IBM hierarchical DBMS for IBM mainframes. IMS was widely implemented throughout the 1970s under MVS and continues to be used under z/OS. ) (-$17,557.9 million). These decreases were partially offset by revised cost estimates based on a more detailed design (+ $1,364.9 million), and a procurement stretchout from 1.5 brigade combat teams (BCTs) to 1.0 BCTs per year (+ $10,573.7 million) and associated increases in support costs (+ $3,260.7 million). FMTV FMTV Family of Medium Tactical Vehicles FMTV Frequency Modulation Television (Family of Medium Tactical Vehicles The Family of Medium Tactical Vehicles (FMTV) is a series of vehicles manufactured by BAE Systems Mobility & Protection Systems (M&PS) (formerly the Tactical Vehicle Systems Division of Armor Holdings Aerospace and Defense Group, originally Tactical Vehicle Systems, LP, a ) -- Program costs increased $3,351.9 million (+ 19.2 percent) from $17,450.1 million to $20,802.0 million, due primarily to the addition of Long Term Armor Strategy (LTAS LTAS Long Term Armor Strategy (US Army) ) A-Cab (+ $1,257.1 million) and associated LTAS installation kits (+ $1,319.1 million). There were also increased recurring costs for planned model mix changes (+ $672.8 million) and the application of revised escalation rates (+ $64.6 million). These decreases were partially offset by an acceleration of the annual procurement buy profile (-$149.7 million). GMLRS (Guided Multiple Launch Rocket System) -- Program costs decreased $9,262.2 million (-57.8 percent) from $16,034.7 million to $6,772.5 million, due primarily to a quantity reduction of 96,444 rockets from 140,004 to 43,560 rockets (-$8,922.7 million) and associated schedule and estimating allocations* (-$1,645.2 million). These decreases were partially offset by a stretchout in the annual procurement buy profile (+ $292.7 million) and increased unit costs of the lower annual buys (+ $936.3 million). HIMARS HIMARS High Mobility Artillery Rocket System HIMARS Highly Mobile Artillery System (High Mobility Artillery Rocket System The High Mobility Artillery Rocket System (HIMARS) is a U.S. light multiple rocket launcher system mounted on a truck. HIMARS carries six rockets or one Army Tactical Missile System (ATACMS) missile on the U.S. ) -- Program costs decreased $1,249.4 million (-37.4 percent) from $3,338.1 million to $2,088.7 million, due primarily to a quantity reduction of 210 launchers from 591 to 381 (-$924.1 million) and associated schedule and estimating allocations* (-$448.1 million). These decreases were partially offset by higher estimates based on actuals (+ $96.7 million) and the application of revised escalation rates (+ $29.6 million). Land Warrior -- Program costs decreased $3,382.8 million (-83.4 percent) from $4,054.2 million to $671.4 million, due to termination of the program by the Army Acquisition Executive. Longbow Apache -- Program costs increased $1,629.6 million (+17.3 percent) from $9,405.2 million to $11,034.8 million, due primarily to a quantity increase of 29 war replacement aircraft (+ $850.0 million) and 24 Extended Block II aircraft (+ $309.5 million). As a result, the total quantity increased 53 aircraft from 613 to 666 aircraft. There were also programmatic changes in Longbow Apache requirements, such as the Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (MTADS/PNVS), which increased the estimated costs (+ $412.6 million). Longbow Apache Block III -- Program costs increased $896.5 million (+ 11.1 percent) from $8,093.9 million to $8,990.4 million, due primarily to a quantity increase of 37 aircraft from 602 to 639 aircraft (+ $395.5 million). There were also increases in software maintenance and system engineering/program management costs due to the increase in aircraft quantity and a stretchout of procurement profile (+ $353.0 million). Stryker -- Program costs increased by $1,770.1 million (+ 15.6 percent) from $11,360.8 million to $13,130.9 million, due primarily to a quantity increase of 256 vehicles from 2,641 to 2,897 vehicles (+ $1,058.9 million) and associated spares and support (+ $254.2 million). There were also increases from an extension of the procurement schedule from fiscal year 2011 to fiscal year 2012 (+ $213.8 million), and the addition of development effort for the mast-mounted sensor, active protection systems, and mobile gun system environmental control (+ $236.9 million). These increases were partially offset by a change in the mix of models to be procured (-$357.1 million). WIN-T (Warfighter Information Network-Tactical) -- Program costs increased by $2,190.9 million (+ 15.5 percent) from $14,170.5 million to $16,361.4 million, due primarily to an increase in communications equipment to procure for the Total Army (+ $1,517.9 million). Costs also increased due to a refinement of the estimate for recurring engineering (+ $559.4 million), an increase in flyaway cost to account for technology changes during the procurement schedule (+ $417.5 million), and an increase in fielding and initial spares (+ $386.6 million). These increases were partially offset by a decrease due to the removal of Joint Tactical Radio System (JTRS JTRS Joint Tactical Radio System JtRS Just The Right Shoe JTRS Just the Right Size JTRS Johnson Technical Reports Server JTRS Joint Tenancy with Right of Survivorship JTRS Jefferson Township Rescue Squad ) equipment (-$482.0 million) and a reduction in technical refresh and post deployment sustainment and support (-$483.1 million). Navy ADS (Advanced Deployable System) -- Program costs decreased $883.8 million (-62.6 percent) from $1,412.6 million to $528.8 million, due to termination of the program by the Navy Acquisition Executive in October 2006. E-2D AHE (Advanced Hawkeye) -- Program costs increased by $1,765.5 million (+ 11.2 percent) from $15,721.5 million to $17,487.0 million, due primarily to higher Mission Electronics, general procurement, and mission systems pricing (+ $653.7 million), a stretchout of the annual buy profile in fiscal year 2009-2020 (+ $374.8 million), and additional pilot production funding (+ $169.0 million). There were also increases for the addition of the automatic identification system, dual transit satellite communication, and in-flight refueling requirements (+ $137.1 million), a revised estimate to reflect new pricing for the system development and demonstration contract (+ $234.3 million), and increases in initial spares, peculiar support equipment and training, and other production support costs (+ $159.1 million). F/A-18E/F E/F Educator/Facilitator -- Program costs increased by $2,358.3 million (+ 5.4 percent) from $44,030.5 million to $46,388.8 million, due primarily to the increase of 32 aircraft from 462 to 494 aircraft (+ $1,716.0 million) and associated schedule, engineering, and estimating allocations* (+ $334.1 million). There were also increases in support costs related to the higher quantity (+ $446.5 million). LCS LCS - Language for Communicating Systems (Littoral Combat Ship The Littoral Combat Ship is the first of the U.S. Navy's next-generation surface combatants. Intended as a relatively small surface vessel for operations in the littoral region (close to shore), the LCS is smaller than the Navy's guided missile frigates, and have been compared to ) -- Program costs increased $237.0 million (+ 13.9 percent) from $1,701.9 million to $1,938.9 million, due primarily to longer than expected development time for Flight 0 and the postponement of Flight 1 (+ $162.2 million). There was also additional scope for Mission Module development and Flight 0 training and testing (+ $73.0 million) and sea frame pricing increases (+ $25.9 million). LPD 17 -- Program costs increased by $1,107.4 million (+ 8.9 percent) from $12,486.6 million to $13,594.0 million, due primarily to the addition of Hurricane Katrina Supplemental funding (+ $1,155.4 million). SSN 774 (Virginia Class) -- Program costs decreased by $2,813.5 million (-2.9 percent) from $95,821.7 million to $93,008.2 million, due primarily to a lower estimate for labor, materials, rates, and profit (-$1,971.1 million). Cost estimates also decreased for the technology insertion of the advanced sail program (-$541.8 million) and a reduced estimate of plans, change orders, hull, and mechanical/electrical changes (-$549.2 million). V-22 -- Program costs increased $4,139.7 million (+ 8.2 percent) from $50,497.1 million to $54,636.8 million, due primarily to revised airframe and engine costing methodologies (+ $3,147.9 million), and a stretchout of the annual buy profile (+ $218.8 million). There was also additional schedule variance for manufacturing inefficiencies, outyear out·year n. A fiscal year after the year covered in a budget. Often used in the plural: The state budget assumes reduced expenditures on welfare in outyears. labor rates, and sustaining work impacts from delaying 22 MV-22 aircraft beyond fiscal year 2013 (+ $538.4 million) and the application of revised escalation rates (+ $283.6 million). Air Force AMRAAM AMRAAM Advanced Medium-Range Air-to-Air Missile (Advanced Medium Range Air-to-Air Missile) -- Program costs increased $1,603.2 million (+ 12.2 percent) from $13,188.7 million to $14,791.9 million, due primarily to lower-than-expected Foreign Military Sales That portion of United States security assistance authorized by the Foreign Assistance Act of 1961, as amended, and the Arms Export Control Act of 1976, as amended. This assistance differs from the Military Assistance Program and the International Military Education and Training Program (FMS FMS - Flexible Manufacturing System (factory automation). ) projections (+ $557.9 million) and an acquisition strategy pricing change (+ $859.2 million). There were also increases related to a stretchout of the annual procurement buy profile (+ $93.7 million), additional special tooling and test equipment (+ $54.8 million), and an overrun in the AIM-120D (Phase 4) system development and demonstration contract (+ $32.7 million). C-5 AMP (Avionics Modernization Program) -- Program costs increased $551.2 million (+ 64.1 percent) from $859.3 million to $1,410.5 million, due primarily to a quantity increase of 51 kits from 59 to 110 (+ $291.4 million), and associated increases in initial spares, peculiar support equipment, and other weapon system costs (+ 229.1 million). C-17A -- Program costs increased by $2,909.9 million (+ 4.9 percent) from $59,552.7 million to $62,462.6 million, due primarily to an increase of 10 aircraft from 180 to 190 aircraft (+ $2,093.9 million) and revised peculiar support estimates (+ $618.5 million). There were also Congressional adds in support of the global war on terrorism Terrorist acts and the threat of Terrorism have occupied the various law enforcement agencies in the U.S. government for many years. The Anti-Terrorism and Effective Death Penalty Act of 1996, as amended by the usa patriot act (GWOT GWOT Global War on Terrorism ) (+ $227.5 million), higher estimates for continuing development (+ $126.0 million), and an extension of the development program out to fiscal year 2012-2013 (+ $450.1 million). These increases were partially offset by revised project estimates and Air Mobility Command priorities (-$364.0 million) and a revised production shutdown estimate (-$271.2 million). C-130 AMP (Avionics Modernization Program) -- Program costs increased $1,047.8 million (+ 21.2 percent) from $4,933.2 million to $5,981.0 million, due primarily to increases in labor rates and install hours (+ $691.4 million) and increases in mission support equipment, simulator/trainers, depot costs, and other weapon system costs (data, peculiar support equipment, interim contractor support and training (+ 810.5 million). These increases were partially offset by a quantity decrease of 166 aircraft from 434 to 268 aircraft (-$560.6 million). EELV EELV Evolved Expendable Launch Vehicle EELV End-Expiratory Lung Volume EELV Extended Expendable Launch Vehicle (Evolved Expendable Launch Vehicle The Evolved Expendable Launch Vehicle (EELV) program was a United States government, primarily a Department of Defense–sponsored effort to develop at least one family of space launch vehicles, that would meet the long term needs of the military and fulfill commercial ) -- Program costs increased $3,825.9 million (+ 12.0 percent) from $31,903.0 million to $35,728.9 million, due primarily to increased costs for Buy 3 Launch Services (+ $3,943.5 million) and Launch Capabilities contracts (+ $298.4 million). There were also increases for the application of revised escalation rates (+ $214.5 million) and an adjustment to the annual mission procurement buy profile (+ $55.0 million). These net increases were partially offset by budget reductions (-$365.4 million) and estimating adjustments (-$319.7 million). F-22A -- Program costs increased $2,692.7 million (+ 4.3 percent) from $62,600.0 million to $65,292.7 million, due primarily to a revised estimate for the replan of Increments 3.1 and 3.2 (+ $1,987.1 million), the additional of funding for the first year of multiyear procurement (+ $1,416.5 million), an increase in peculiar support for two operating locations (+ $311.1 million), and the application of revised escalation indices (+ $197.1 million). These increases were partially offset by reductions in development funding for the modernization program (-$110.0 million), revised estimates for the second and third years of multiyear procurement (-$980.6 million), and an acceleration of the annual procurement buy profile from a four-year to a three-year schedule (-$161.1 million). GBS See GB/sec. (Global Broadcast Service) -- Program costs increased $111.3 million (+ 15.0 percent) from $744.0 million to $855.3 million, due primarily to a new GBS Simplified Robust Architecture (SRA) that will address broadcast shortfalls. The SRA upgrade is scheduled for implementation in fiscal year 2008-2010. Beginning in fiscal year 2008, the SRA upgrade will develop custom software, procure commercial hardware/software, integrate into the Defense Enterprise Computing Centers (DECCs), integrate Joint Internet Protocol Modem (JIPM JIPM Japanese Institute of Plant Maintenance ) hubs into two Ultra-high Frequency Follow-on (UFO) uplink sites, establish JIPM upgrade kits for receive suites, transition to DoD teleports as required for wideband gap-filler satellite (WGS) broadcasts, and perform developmental/operational tests leading to follow-on operational test and evaluation (testing) operational test and evaluation - (OT&E) Formal testing conducted prior to deployment to evaluate the operational effectiveness and suitability of the system with respect to its mission. events. JASSM (Joint Air-to-Surface Standoff Missile) -- Program costs increased by $882.3 million (+ 18.0 percent) from $4,914.0 million to $5,796.3 million, due primarily to engineering increases for JASSM extended range, weapon data link, and maritime interdiction INTERDICTION, civil law. A legal restraint upon a person incapable of managing his estate, because of mental incapacity, from signing any deed or doing any act to his own prejudice, without the consent of his curator or interdictor. 2. (+ $133.9 million), implementation of a robust reliability improvement program (+ $599.8 million), and stretchout of the annual buy profile (+ $79.7 million). MP-RTIP MP-RTIP Multi-Platform Radar Technology Insertion Program (Multi-Platform Radar Technology Insertion Program The Multi-Platform Radar Technology Insertion Program (MP-RTIP), a U.S. Air Force project led by contractor Northrop Grumman to develop the next generation of airborne air-to-air and air-to-ground radar systems. ) -- Program costs decreased by $321.7 million (-20.6 percent) from $1,559.7 million to $1,238.0 million, due primarily to the termination of MP-RTIP Wide Area Surveillance (WAS) radar development efforts associated with the E-10A technology development program (-$351.0 million). NPOESS NPOESS National Polar-Orbiting Operational Environmental Satellite System (US NOAA) (National Polar-Orbiting Operational Environmental Satellite System) -- Program costs decreased by $2,649.6 million (-19.2 percent) from $13,810.2 million to $11,160.6 million, due primarily to the decisions made as a result of a Nunn-McCurdy certification process that concluded in June 2006. The findings and recommendations coming out of the Nunn-McCurdy certification resulted in significant changes to the satellite procurement quantity, launch dates, sensor payloads, and funding. The Conical Scanning Microwave Imager/Sounder (CMIS (Common Management Information Services) Pronounced "c-miss." An OSI standard that defines the functions for network monitoring and control. CMIS - Common Management Information Services ) and seven other sensors were demanifested from the program (-$570.6 million), the development baseline program was restructured (-$506.2 million), the quantity of procurement satellites was reduced from 4 to 2 (-$594.5 million), the procurement baseline program was restructured (-$772.2 million), and the procurement costs were reduced due to the demanifestation of the sensors (-$292.1 million). DoD BMDS BMDS Ballistic Missile Defense System BMDS Base Manpower Data System (Ballistic Missile Defense System Noun 1. missile defense system - naval weaponry providing a defense system missile defence system naval weaponry - weaponry for warships ) -- Program costs increased by $17,377.4 million (+ 20.2 percent) from $85,910.7 million to $103,288.1 million, due primarily to the addition of fiscal year 2012 and fiscal year 2013 funding (+ $19,350.1 million), increases in Terminal High Altitude Area Defense Terminal High Altitude Area Defense (THAAD), formerly Theater High Altitude Area Defense, is a United States Army project to develop a system to shoot down short- and medium-range ballistic missiles over a theater or region by ramming them with interceptor missiles. program content (+ $1,036.0 million), restructure of the Sea-Based Terminal program (+ $860.4 million), additional sensors to support a proposed European site (+ $2,489.3 million), and revised escalation indices (+ $727.6 million). These increases were partially offset by delaying the Space Tracking and Surveillance System beyond fiscal year 2013 (-$1,472.3 million), restructuring the Kinetic Energy Interceptor The Kinetic Energy Interceptor (KEI) is a planned U.S. missile defense program whose goal is to design, develop, and deploy kinetic energy-based, mobile, ground and sea-launched missiles that can intercept and destroy enemy ballistic missiles during their boost phase. program (-$3,396.5 million), and program-wide reductions (-$2,304.4 million). F-35 (Joint Strike Fighter) -- Program costs increased by $23,365.2 million (+ 8.5 percent) from $276,458.9 million to $299,824.1 million, due primarily to a decrease in the annual procurement quantities and a stretchout of the production buy schedule from fiscal year 2027 to fiscal year 2034 (+ $11,207.8 million), revised estimate for airframe materials due to commodity market increases (+ $5,472.8 million), increase due to revised assumptions based on contractor LRIP LRIP Low Rate Initial Production LRIP Limited Rate Initial Production LRIP Logistics Readiness Improvement Program I proposals and methodology (+ $8,307.1 million), and support increase due to aircraft configuration update, revised procurement profile, and methodology changes (+ $6,423.2 million). These increases were partially offset by revised assumptions for prime and subcontractor labor rates (-$3,576.3 million) and revised assumptions for subcontractor costs (-$5,201.4 million). JTRS (Joint Tactical Radio System) Waveform -- Program costs increased $317.5 million (+ 17.8 percent) from $1,786.6 million to $2,104.1 million, due primarily to revised estimate for Network Engineering Services (NES) (+ $241.0 million) and fiscal year 2008 President's Budget updates (+ $65.7 million). * Note: Quantity changes are estimated based on the original SAR baseline cost-quantity relationship. Cost changes since the original baseline are separately categorized as schedule, engineering, or estimating "allocations." The total impact of a quantity change is the identified "quantity" change plus all associated "allocations."
CURRENT ESTIMATE ($ IN MILLIONS)
September 2006 (87 programs) $1,617,710.1
Plus two new programs (Longbow Apache Block III and +9,976.9
LUH)
September 2006 Adjusted (89 programs) $1,627,687.0
Changes Since Last Report:
Economic $+6,957.0
Quantity -7,454.6
Schedule +22,644.8
Engineering +3,188.4
Estimating +18,888.6
Other -2,319.1
Support +14,381.7
Net Cost Change $+56,286.8
December 2006 (89 programs) $1,683,973.8
CURRENT ESTIMATE ($ IN MILLIONS)
Program
DIMHRS (Defense Integrated
Military Human Resources System $805.1
ERM (Extended Range Munition 1,478.0
FAB-T (Family of Beyond Line-of-Sight Terminals) 3,167.4
NMT (Navy Multiband Terminal 2,133.8
RMS (Remote Minehunting System) 1,411.7
VTUAV (Vertical Takeoff and Landing Tactical Unmanned Aerial 2,100.6
Vehicle)
Total $11,096.6
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