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DOD ANNOUNCES SELECTED ACQUISITION REPORTS

April 20, 2011 by

The Department of Defense has released details on major defense acquisition program cost, schedule, and performance changes since the September 2010 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the December 2010 reporting period.

SARs summarize the latest estimates of cost, schedule, and performance status. These reports are prepared annually in conjunction with submission of 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 section 2432 of title 10, United States Code). 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 (September 2010) was $1,679,305.3 million. The AB3 (Apache Block III) program was divided into two separate programs (AB3A Remanufacture and AB3B New Build). After subtracting the costs for a final report on C-17A and adding the costs for an initial report on Small Diameter Bomb II (SDB II) from the September 2010 reporting period, the adjusted current estimate of program acquisition costs is $1,615,018.7 million.
Current Estimate
($ in Millions)
September 2010 (94 programs) 1,679,305.3 Plus one additional program from dividing AB3 into two 0.0
programs (AB3A Remanufacture and AB3B New Build)
Less final report on one program (C17A) 69,497.0
Plus initial report on one program (SDB II) +$5,210.4
September 2010 Adjusted (95 programs) 1,615,018.7
Changes Since Last Report:
Economic +882.1
Quantity +10,580.5
Schedule +1,640.2
Engineering +7,030.4
Estimating +33,623.6
Other 0.0
Support +10,225.5
Net Cost Change +63,982.3
Plus initial procurement and construction cost
estimates for LCS: + 32,625.9
(Littoral Combat Ship); previous reports were limited to development cost in accordance with section 2432 of title 10, United States Code
Plus BMDS (Ballistic Missile Defense System) development, procurement, +8,480.6 and construction funding for fiscal 2016; previous reports limited total funding through fiscal 2015 December 2010 (95programs), 1,720,107.5

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