DoD Releases June 2006 Selected Acquisition Reports
September 18, 2006 // Published as a news service by IHS
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The Department of Defense (DoD) released details on major defense acquisition program cost, schedule and performance changes since the December 2005 reporting period. The information is based on the selected acquisition reports (SARs) submitted to Congress for the June 2006 reporting period.
SARs summarize the latest estimates of cost, schedule and performance status. The 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% 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.
- 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 (December 2005) was $1,584,718.7M.
After subtracting the costs for two final reports (aerial common sensor (ACS) and advanced sea, air and land (SEAL) delivery system (ASDS)) and adding the costs for four new programs (advanced deployable system (ADS), heavy lift replacement (HLR), LHA replacement and VH-71 presidential helicopter) from the December 2005 reporting period, the adjusted current estimate of program acquisition costs was $1,612,682.5M.
For the June 2006 reporting period, there was a net cost decrease of $76.7M (-0.005%), due to revised cost estimates and support requirements for the MH-60R.
For the June 2006 reporting period, there were quarterly exception SARs submitted for five programs. The reasons for the submissions are provided below:
- U.S. Navy
- Active Electronically Scanned Array (AESA) - The SAR was submitted to report program expenditures of more than 90%. In accordance with 10 USC §2432, this is the final AESA SAR submission.
- MH-60R - The SAR was submitted to rebaseline from a development to a production estimate following a full rate production decision (milestone III) on March 31, 2006. Program costs decreased $76.7M (-0.7%) from $11,396.0M to $11,319.3M, due to revised cost estimates and support requirements.
- MH-60S - The SAR was submitted to report a schedule slip of six months for the airborne mine countermeasure (AMCM) initial operational capability (IOC) from March 2007 to September 2007. Also, AMCM interim process review IV slipped from April 2007 to July 2007.
- U.S. Air Force
- C-5 Avionics Modernization Program (AMP) - This is the initial SAR submission since the program exceeded the major defense acquisition program (MDAP) reporting criteria.
- Navigation Signal Timing and Ranging (NAVSTAR ) Global Positioning System (GPS) - The SAR was submitted to report schedule slips of six months or more. The M-code receiver card ready for production slipped from January 2009 to May 2011. Also, the 1st block IIF space vehicle available for launch slipped from November 2006 to January 2009.
- The DoD submitted an initial SAR June 30, 2006 for the Air Force's C-5 Avionics Modernization Program (AMP). The report does not represent cost growth. Baselines established on this program will be the point from which future changes will be measured. The current cost estimate is $859.3M.
Source: U.S. Department of Defense (DoD).