Department of Defense news release (Nov. 18, 2003): DoD releases Selected Acquisition Reports.

The Department of Defense has released details on major defense acquisition program cost and schedule changes since the June 2003 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the Sept. 30, 2003, reporting period. This report can be viewed at: http://www.defenselink.mil/News/Nov2003/d20031118sar.pdf.

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 [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 (June 2003) was $1,135,706.5 million. After adding the costs for new programs that were reported in the June 2003 reporting period (shown in the sidebar), the adjusted current estimate of program acquisition costs was $1,246,366.3 million. There was a net cost increase of $511.8 million (+0.04 percent) during the current reporting period (September 2003). This increase was due to the reallocation of seven EELV (Evolved Expendable Launch Vehicle) missions from Boeing to Lockheed Martin as a result of the Procurement Integrity Act remedy and increased prices on the EELV Buy II mission awards.

September 2003 (77 programs)

For the September 2003 reporting period, there were quarterly exception SARs submitted for four programs (GCSS ARMY, WIN-T, EELV, and SBIRS HIGH). The reasons for the submissions are provided below.

                                       Current Estimate
                                        ($ in Millions)

June 2003 (73 programs)                    $1,135,706.5
Plus four new programs (FCS, AGM-88E,
  ASDS, & E-2 AHE                            +110,659.8
June 2003 Adjusted (77 programs)             +110,659.8
Changes Since Last Report:
    Economic                                      $ 0.0
    Quantity                                        0.0
    Schedule                                        0.0
    Engineering                                     0.0
    Estimating                                   +511.8
    Other                                           0.0
    Support                                         0.0
         Net Cost Change                        $+511.8
September 2003 (77 programs)               $1,246,878.1