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IMMEDIATE RELEASE

Release No: 604-98
November 23, 1998

SEPTEMBER 1998 SELECTED ACQUISITION REPORTS RELEASED

The Department of Defense has released details on major defense acquisition program cost and schedule changes since the June 1998 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the Sept. 30, 1998 reporting period.

SARs summarize the latest estimates of program 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 & maintenance. Total program costs reflect actual costs to date as well as anticipated costs for future efforts. All estimates include allowances for anticipated inflation.

The current estimate of program acquisition costs for programs covered by SARs for the prior reporting period (June 1998) was $674,085.9 million. After adding the costs for the new programs (ICH and DD 21), the December 1997 adjusted current estimate of program acquisition costs was $679,360.7 million. There was a net increase of $638.9 million during the current reporting period (September 1998). The cost changes between June 1998 and September 1998 are summarized below:

Current Estimate
($ in Millions)
September 1998 (77 programs*) $674,085.9
Plus two new programs (ICH and DD 21) +5,274.8
September 1988 Adjusted (79 programs*) $679,360.7

* Excludes classified costs for the Air Force's MILSTAR program.

Changes Since Last Report:
Economic $0.0
Quantity +379.0
Schedule +33.5
Engineering +24.6
Estimating +50.2
Other 0.0
Support +151.3
Net Cost Change +638.6
September 1998 (79 programs*) $679,999.3

For the September 1998 reporting period, there were quarterly exception reports submitted for seven programs: FAAD C2I, CH-60S, E-2C REPRODUCTION, STD MSL 2, GBS, NAVY AREA TBMD, and PATRIOT PAC-3. The Navy's CH-60S was the only program reporting for the first time. For the remaining six programs that have reported previously, there was a net cost increase of $638.6M (+0.09 percent) due primarily to a quantity increase to the Army's FAAD C2I program.

New SARs (As of September 30, 1998)

The Department of Defense has submitted an initial SAR for one new program, the Navy's CH-60S Vertical Replacement Helicopter. This report does not represent cost growth. The baseline established on this program will be the point from which future changes will be measured. The current cost estimate is provided below:

Current Estimate
Program ($ in Millions)
CH-60S $3,154.0

Excludes classified costs for the Air Force's MILSTAR program.

More information on the SAR cost summary can be found at www.defenselink.mil/releases/1998/sum0998.pdf .

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