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IMMEDIATE RELEASE

Release No: 959-08
November 17, 2008

Department of Defense Releases Selected Acquisition Reports

         The Department of Defense (DoD) has released details on major defense acquisition program cost, schedule, and performance changes since the June 2008 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the September 2008 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 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 (June 2008) was $1,642,568.5 million. After subtracting the costs for two final reports (ERM and MM III GRP), and adding the costs for four new programs (EA-6B ICAP III, GPS IIIA, IDECM, and JCA) from the June 2008 reporting period, the adjusted current estimate of program acquisition costs was $1,651,157.9 million. For the September 2008 reporting period, there was a net cost decrease of $2,865.6 million (-0.2%), due primarily to the termination of the Armed Reconnaissance Helicopter (ARH) program during the Nunn-McCurdy certification process.
 
Current Estimate
($ in Millions)
June 2008 (89 programs)
 
$1,642,568.6
Less final reports on two programs (ERM and MM III GRP)
-2,835.9
 
 
Plus initial reports on four programs (EA-6B ICAP III, GPS IIIA, IDECM, and JCA)
 
+11,425.2
June 2008 Adjusted (91 programs)
 
$1,651,157.9
 
 
 
 
 
 
 
Changes Since Last Report:
 
 
Economic
 
$ 0.0
 
Quantity
 
-3,062.0
 
Schedule
 
+876.9
 
Engineering
 
+72.2
 
Estimating
 
+562.9
 
Other
 
0.0
 
Support
 
-1,315.6
 
 
Net Cost Change
$ -2,865.6
 
 
September 2008 (91 programs)
$1,648,292.3
 

         For the September 2008 reporting period, there were quarterly exception SARs submitted for five programs. The reasons for the submissions are provided below.
 
Army:
ARH (Armed Reconnaissance Helicopter) – Program costs decreased $4,748.0 million from $5,259.7 million to $501.7 million (-90.5%), due to program termination during the Nunn-McCurdy certification process.
 
FBCB2 (Force XXI Battle Command Brigade and below) – The SAR was submitted to reflect schedule delays of greater than six months. Specifically, Follow-On Test and Evaluation slipped 6 months from May 2009 to November 2009 to coincide with the Army Software Blocking 2+ Operational Evaluation. Program costs increased $357.8 million from $3,371.1 million to $3,728.9 million (+10.6%), due to an increase in quantity of 6,955 units from 73,463 to 80,418 (+$162.5 million) and associated schedule, engineering, and estimating allocations* (+$58.9 million).   In addition, there were increases in support associated with the quantity increase (+$138.5 million).
 
Air Force:
AEHF (Advanced Extremely High Frequency) – Program costs increases $2,576.6 million from $5,645.3 million to $9,938.6 million (+35.0%) to reflect cost increases which have resulted in a critical Nunn-McCurdy unit cost breach currently undergoing certification review.
 
DoD:
Chem-Demil-ACWA (Chemical Demilitarization-Assembled Chemical Weapons Alternatives) –The SAR was submitted to reflect schedule delays of greater than six months. Specifically, the Pueblo "Begin Operations" milestone slipped 23 months from January 2015 to December 2016, and the Blue Grass "Begin Operations" milestone slipped 49 months from January 2017 to February 2021. DoD is currently evaluating the cost impacts of these schedule slips.
 
Chem-Demil-CMA (Chemical Demilitarization-Chemical Materials Agency) - The SAR was submitted to reflect schedule delays of greater than six months. Specifically, the Pine Bluff Explosive Destruction System (PBEDS) Complete Operations milestone slipped 34 months from December 2008 to October 2011, pending the ongoing technology selection process. There were no cost changes.
 
 
* 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."

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