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30 Mar 12. The Department of Defense (DoD) has released details on major defense acquisition program cost, schedule, and performance changes since the December 2010 reporting period. This information is based on the Selected Acquisition Reports (SARs) (http://www.defense.gov/news/PAC.PDF) submitted to the Congress for the December 2011 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 may be 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 are shown in fully inflated then-year dollars.

The current estimate of program acquisition costs for programs covered by SARs for the prior reporting period (December 2010) was $1,720,107.5m. After the following adjustments: subtracting the costs for 14 final reports on Airborne Signals Intelligence Payload (ASIP), Advanced Threat Infrared Countermeasures/Common Missile Warning System (ATIRCM/CMWS), B-2 Radar Modernization Program(RMP), C-5 Avionics Modernization Program (AMP), C-27J, Expeditionary Fighting Vehicle (EFV), F-22, Force XXI Battle Command Brigade and Below (FBCB2), Increment 1 Early-Infantry Brigade Combat Team (E-IBCT), Joint Mine Resistant Ambush Protected (MRAP) vehicle, Large Aircraft Infrared Countermeasures (LAIRCM), Longbow Apache helicopter, Space Based Space Surveillance (SBSS) Block 10 satellite, and the T-AKE dry cargo/ammunition ship; 2)adding the costs for two new reports on the KC-46A and KC-130J aircraft; and 3) reporting the net cost changes for the June 2011 and September 2011 quarterly SARs, results in a current estimate of program acquisition costs as of the September 2011 reporting period of $1,618,836.4m.

For the December 2011 reporting period, there is a net cost decrease of $8,727.1m or -0.5 percent for the 83 programs covered relative to the same programs in previous SARs. This cost decrease is due primarily to a net decrease in planned quantities to be purchased (-$16,171.6m) along with associated support requirements (-$7,065.6m). There are also net decreases in program cost estimates (-$9,132.4m) and engineering changes to hardware/ software (-$3,717.5m). These decreases were partially offset by the application of higher escalation rates (+$17,651.4m) and a net stretch-out of development and procurement schedules (+$9,716.3m).

New SARs

DoD is submitting initial SARs for the following programs as of the December 2011 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.

For the December 2011 reporting period, there are three programs with critical Nunn-McCurdy unit cost breaches to their current and original Acquisition Program Baseline (APB) (see below). There are no programs with significant Nunn-McCurdy unit cost breaches to their current or original APB. In accordance with the provisions of sections 2433 and 2433a of title 10, United States Code, the Department will notify Congress and provide the required unit cost breach information in the SARs for these three programs. In addition, a certification determination by the Under Secretary of Defense for Acquisition, Technology and Logistics (USD(AT&L)) will be made (

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