Department of Defense News Release (Aug. 22, 2007): Department of Defense releases Selected Acquisition Reports.
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 operation and maintenance (except for pre-Milestone B programs, which are limited to development costs pursuant to 10 U.S.C. [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 of program acquisition costs for programs covered by SARs for the prior reporting period (December 2006) was $1,683,973.8 million (see right column). After subtracting the costs for two final reports (Land Warrior and E-2C Reproduction) and the MK 2 portion of Ship Self Defense System (SSDS), and adding costs for six new programs--Defense Integrated Military Human Resources System (DIMHRS), Extended Range Munition (ERM), Family of Beyond Line-of-Sight Terminals (FAB-T), Navy Multiband Terminal (NMT), Remote Mine-hunting System (RMS), and Vertical Takeoff and Landing Tactical Unmanned Aerial Vehicle (VTUAV) from the December 2006 reporting period--the adjusted current estimate of program acquisition costs was $1,689,502.0 million. For the June 2007 reporting period, there was a net cost increase of $4,271.4 million (+ 0.3 percent), due primarily to revised cost estimates for the Expeditionary Fighting Vehicle program.
For the June 2007 reporting period, there were quarterly exception SARs submitted for five programs. The reasons for the submissions are provided in the tables.
Cobra Judy Replacement -- The SAR was submitted to report schedule slips of six months or more. The program was restructured to accommodate misalignments between the funding profile and the ship and mission equipment production schedules. The replanned program delays initial operational capability until December 2012.
Expeditionary Fighting Vehicle (EFV) -- The SAR was submitted to report schedule slips of approximately two years since the December 2006 SAR. In February 2007, the program experienced a critical Nunn-McCurdy unit cost breach due primarily to system reliability challenges and a quantity reduction. The department certified a revised program to Congress in June 2007. Program costs increased $4,069.4 million (+ 34.2 percent) from $11,902.7 million to $15,972.1 million.
LHA Replacement -- The SAR was submitted to report schedule slips of six months or more to the program, due primarily to delays in the detail design and construction contract award from December 2006 to June 2007 and ship delivery from December 2011 to August 2012. Program costs increased $202 million (+6.6 percent) from $3,078.9 million to $3,280.9 million to reflect receipt of fiscal year 2006 supplemental funds to offset Hurricane Katrina impact on the detail design and construction contract.
B-2 Extremely High Frequency Increment (EHF) 1 -- This is the initial SAR submission following program initiation at the Milestone B decision in May 2007.
B-2 Radar Modernization Program (RMP) -- The SAR was submitted to report schedule slips of six months or more to the program. The Air Force was aggressive with the RMP schedule due to direction from the Department of Commerce to vacate the current B-2 radar operating frequency, but this schedule was not achievable due to the technical maturity of the radar antenna being slower than planned.
New SARs (As of June 2007)
The Department of Defense has submitted an initial SAR for the B-2 EHF Increment 1 program for the June 2007 reporting period. This report does not represent cost growth. The baseline established on this program will be the point from which future changes will be measured.
Current Estimate (in millions) December 2006 (89 programs) $1,683,973.8 Less final reports on two programs (Land -5,568.4 Warrior and E-2C Reproduction, and MK 2 portion of SSDS program) Plus six new programs (DIMHRS, ERM, FAB- +11,096.6 T, NMT, RMS and VTUAV) December 2006 Adjusted (93 programs) $1,689,502.0 Changes Since Last Report Current Estimate (in millions Economic $0.0 Quantity +8.3 Schedule +842.8 Engineering 0.0 Estimating +3,039.3 Other 0.0 Support +381.0 Net Cost Change $+4,271.4 Program Current Estimate (in millions) B-2 EHF Increment 1 $706.1
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|Title Annotation:||In the News|
|Publication:||Defense AT & L|
|Date:||Jan 1, 2008|
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