Department of Defense Announces Selected Acquisition Reports
(Source: US Department of Defense; dated Aug. 17, 2010)
The Department of Defense (DoD) has released details on major defense acquisition program cost, schedule, and performance changes since the December 2009 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the June 2010 reporting period.

Selected Acquisition Reports 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 section 2432 of title 10, United States Code.) Total program costs reflect actual costs to date as well as anticipated future 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 2009) was $1,616,169.3 million.

After subtracting the costs for four final reports:
Bradley Upgrade, CVN 68, EA-6B ICAP (Improved Capability) III, and Minuteman III PRP (Propulsion Replacement Program)

and adding the costs for eleven new programs:
AMF JTRS (Airborne and Maritime Fixed Joint Tactical Radio System), ASIP (Airborne Signals Intelligence Payload), BAMS UAS(Broad Area Maritime Surveillance Unmanned Aircraft System), ER/MP UAS (Extended Range/Multi-Purpose Unmanned Aircraft System), IAMD (Integrated Air and Missile Defense), INC 1 E-IBCT (Increment 1 Early-Infantry Brigade Combat Team), JHSV (Joint High Speed Vessel), JPALS (Joint Precision Approach and Landing System), Predator Unmanned Aircraft System, Reaper Unmanned Aircraft System, and WIN-T INC 3 (Warfighter Information Network-Tactical Increment 3),

the adjusted current estimate of program acquisition costs from the December 2009 reporting period was $1,672,150.5 million.

For the June 2010 reporting period, there was a net cost decrease of $52.6 million (-0.003 percent), due primarily to a revised estimate in support of the Milestone C (Low Rate Initial Production) decision for C-130 AMP (Avionics Modernization Program).

Current Estimate ($ in Millions)

-- December 2009 (87 programs): $ 1,616,169.3

-- Less final reports on four programs
(Bradley Upgrade, CVN 68, EA-6B ICAP III, and Minuteman III PRP): -18,836.8

-- Plus initial reports on eleven programs
(AMF JTRS, ASIP, BAMS, ER/MP UAS, IAMD, INC 1 E-IBCT, JHSV, JPALS, Predator, Reaper, and WIN-T INC 3): +74,818.0

-- December 2009 Adjusted (94 programs): $ 1,672,150.5

-- Net Cost Change Changes Since Last Report: $ -52.6

-- June 2010 (94 programs) $1,672,097.9

For the June 2010 reporting period, there were quarterly exception SARs submitted for four programs. The reasons for the submissions are provided below.

-- CVN 78 Class - The SAR was submitted to revise cost variance explanations to provide further clarification of changes associated with the Five Year Build Center that were reported in the December 2009 SAR. There was no net cost change reported.

Air Force:
-- C-130 AMP (Avionics Modernization Program) - The SAR was submitted to rebaseline from a Development to a Production Estimate following approval of Milestone C (Low Rate Initial Production) in June 2010. Program costs decreased $52.6 million (-0.8%) from $6,352.9 million to $6,300.3 million, due primarily to a revised cost estimate in support of the Milestone C decision.

-- HC/MC-130 Recapitalization - This was an initial SAR following program initiation at Milestone C (Low Rate Initial Production) in April 2010.

-- Predator Unmanned Aircraft System - This was a final SAR because the program was more than 90 percent delivered in May 2010 and meets the statutory requirement for termination of reporting.

New SAR (As of June 2010)

The DoD has submitted one initial SAR on the following program for the June 2010 reporting period. This report does not represent cost growth. The baseline established on this program will be the point from which future changes will be measured.

Program / Current Estimate ($ in Millions)

HC/MC-130 Recapitalization: $8,745.3

Click here for the latest SAR (2 pages in PDF format) on the Pentagon website.


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