US Department of Defense, The Department of Defense (DoD) has released details on major defense acquisition program cost, schedule, and performance changes since the December 2006 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the June 2007 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 2006) was $1,683,973.8 million.
After subtracting the costs for two final reports (Land Warrior and E-2C Reproduction) and the MK 2 portion of Ship Self Defense System (SSDS), and adding costs for six new programs – Defense Integrated Military Human Resources System (DIMHRS), Extended Range Munition (ERM), Family of Beyond Line-of-Sight Terminals (FAB-T), Navy Multiband Terminal (NMT), Remote Minehunting System (RMS), and Vertical Takeoff and Landing Tactical Unmanned Aerial Vehicle (VTUAV) from the December 2006 reporting period, the adjusted current estimate of program acquisition costs was $1,689,502.0 million.
For the June 2007 reporting period, there was a net cost increase of $4,271.4 million (+0.3 percent), due primarily to revised cost estimates for the Expeditionary Fighting Vehicle (EFV) program.
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