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Release No: 698-08
August 18, 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 December 2007 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the June 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 (December 2007) was $1,642,973.5 million. After subtracting the costs for seven final reports (Advanced Deployable System (ADS), Defense Integrated Military Human Resources System (DIMHRS), Javelin, Mission Planning System (MPS), Ship Self Defense System (SSDS), Ohio Class SSGN Conversion, and T-45TS), and adding the costs for three new programs (LAIRCM (Large Altitude Infrared Countermeasures), MRAP (Mine Resistant Ambush Protected), and SBSS B10 (Space Based Space Surveillance Block 10)) from the December 2007 reporting period, the adjusted current estimate of program acquisition costs was $1,647,118.6 million. For the June 2008 reporting period, there was a net cost decrease of $4,550.0 million (-0.3 percent), due primarily to a reduction of C-5 RERP (Reliability Enhancement and Reengining Program) aircraft from the recent Nunn-McCurdy certification.
Current Estimate
($ in Millions)
December 2007 (93 programs)
$ 1,642,973.5
Less final reports on seven programs (ADS, DIMHRS, Javelin, MPS, SSDS, SSGN Conversion, and T-45TS)
Plus initial reports on three programs (LAIRCM, MRAP, and SBSS B10)
December 2007 Adjusted (89 programs)
$ 1,647,118.6
Changes Since Last Report:
$ 0.0
Net Cost Change
$ -4,550.0
June 2008 (89 programs)
         For the June 2008 reporting period, there were quarterly exception SARs submitted for nine programs. The reasons for the submissions are provided below.
JCA (Joint Cargo Aircraft) – This is the initial SAR for the JCA program. The USD(AT&L) approved the Milestone C Decision in an Acquisition Program Baseline dated April 17, 2008. 
EA-6B ICAP (Improved Capability) III – This is the initial SAR for the EA-6B ICAP III program.
ERM (Extended Range Munition) – Program costs decreased from $1,521.4 million to $408.2 million (-73.2 percent) due to termination of the program. Four out of five fully configured tactically guided flight failures during a series of engineering developmental tests contributed to the decision to terminate.
H-1 Upgrades (4BW/4BN) – This SAR was submitted to report schedule delays of six months or more since the prior report. Specifically, the Operational Evaluation (OPEVAL) Phase I Complete (AH-1Z) slipped two years from May 2008 to May 2010 due to unresolved Critical Operational Issues related to the AH-1Z weapons employment. There were no cost changes reported.
IDECM (Integrated Defensive Electronic Countermeasures) – This is the initial SAR for the IDECM program. Recent analysis determined that continued research and development (R&D) funding over the course of the IDECM Blocks 1-3 development has resulted in cumulative R&D funding that exceeds the dollar criteria for a Major Defense Acquisition Program, i.e., Acquisition Category I (ACAT I). The Navy’s request to redesignate IDECM as an ACAT I program was approved in March 2008.
MH-60S – This SAR is being submitted to report schedule delays of six months or more. Specifically, Airborne Mine Countermeasures (AMCM) Initial Operational Capability (IOC) slipped 20 months from July 2008 to March 2010 and AMCM Interim Process Review (IPR) IV slipped two years from September 2008 to September 2010 due to testing and reliability issues. There were no cost changes reported.
Air Force:
C-5 RERP (Reliability Enhancement and Reengining Program) –  The SAR was submitted to rebaseline from a Development to a Production estimate following approval of Low Rate Initial Production (Milestone C) and to reflect the Nunn-McCurdy certified restructured program. Since the last report, costs decreased -$3,436.8 million (-30.9 percent) from $11,130.9 to $7,694.1 million due primarily to a reduction in quantity of 59 aircraft from 108 to 49 (-$3.271.0 million) and associated schedule and estimating allocations (-$163.9 million)*. In addition, there were reductions in support associated with the quantity decrease (-$401.0 million).
GPS (Global Positioning System) IIIA – This is the initial SAR for the GPS IIIA program after approval of Key Decision Point (KDP) B on May 8, 2008.
Minuteman III GRP (Guidance Replacement Program) – This is the final submission for this program in accordance with section 2432, title 10, United States Code because it is 90 percent delivered. There were no cost changes reported.
New SARs
(As of June 2008)
         The Department of Defense has submitted four initial SARs for the following programs for the June 2008 reporting period. These reports do not represent cost growth. The baselines established on these programs will be the point from which future changes will be measured. 
Current Estimate
($ in Millions)
EA-6B ICAP Increment III
$ 1,053.8
GPS (Global Positioning System) IIIA
IDECM (Integrated Defensive Electronic Countermeasures)
JCA (Joint Cargo Aircraft)
* 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."