The Department of Defense has released details on major defense acquisition program cost and schedule changes since the June 2000 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the Sept. 30, 2000, reporting period.
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. 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 2000) was $778,645.1 million. After adding costs for a new program (CVNX Future Aircraft Carrier) from June 2000, the adjusted current estimate of program acquisition costs was $782,232.7 million. There was a net cost increase of $239.5 million during the current reporting period (September 2000).
The cost changes between June 2000 and September 2000 are summarized as follows:
- Current estimate for June 2000 (70 programs): $778,645.1 million
- Plus one new program, CVNX (Future Aircraft Carrier): + $3,587.6 million
- Adjusted estimate for June 2000 Adjusted (71 programs): $782,232.7 million
- Net Cost Change: + $239.5 million
- September 2000 (71 programs): $782,472.2 million
The changes since the last report (+$239.5 million) are summarized as follows:
- Economic: + $68.8 million
- Quantity: - $21.1 million
- Schedule: + $17.7 million
- Engineering: + $344.5 million
- Estimating: - $227.0 million
- Other: + $7.2 million
- Support: + $49.4 million
For the September 2000 reporting period, there were eight quarterly exception reports submitted. SARs for six of these programs, FBCB2, AV-8B, CH-60S, SH-60R, B-1 CMUP, and GBS were submitted because of schedule slips of more than six months. SARs for the two remaining programs, JSTARS CGS and F/A-18E/F, were submitted to rebaseline from a Development to a Production Baseline, following recent decisions to proceed into full rate production. Overall, there was a net increase of $239.5 million (+0.03 percent), due primarily to hardware enhancements for the Army's JSTARS CGS program.
The SAR Program Acquisition Cost Summary as of Sept. 30, 2000 is available on line at http://www.defenselink.mil/releases/2000/sar20000930.pdf.