FEATURES Money and Time
Between May 2005 and February 2006, the Government Accountability Office assessed 23 major weapons development programs and found 10 expecting cost overruns of greater than 30 percent or delivery delays of at least a year. Here's a look at the Top 10 expense gainers.
| Program | Growth in Development Cost (%) | Schedule Slippage (%) |
|---|---|---|
| Global Hawk unmanned aerial vehicle | 166 | Undetermined |
| UH-60M helicopter upgrade | 151 | 25 |
| C-130 Avionics Modernization Program | 122 | Undetermined |
| Expeditionary Fighting Vehicle | 61 | 70 |
| Future Combat Systems | 48 | 53 |
| Aerial Common Sensor | 45 | 36 |
| Joint Tactical Radio System Waveform | 44 | Undetermined |
| Joint Tactical Radio System Cluster 1 | 31 | 44 |
| Joint Strike Fighter | 30 | 23 |
| Radar upgrade for F/A-18 aircraft | 14 | 1 |
Source: Defense Department and Government Accountability Office GAO-06-368 April 2006
Failed Fixes
The Defense Department revised its acquisition policy in 2000 to reduce risk and make costs and schedules more predictable. The reform hasn't had the desired effect. Here's a look at overall totals for 23 major programs the Government Accountability Office studied.
| Original Estimate | Current Estimate | |
|---|---|---|
| Cost Growth (constant 2005 dollars in billions) | $83 | $106 |
| Schedule Slippage (in months) | 77 | 88 |
Source: Government Accountability Office, April 2006 (GAO-06-368)
Good Money After Bad
Big Defense acquisitions routinely have suffered schedule slips, unanticipated cost hikes and have fallen short on performance over the past 30 years, despite 11 rewrites of Defense Department buying policies. Here's a look at the combined budget bloat for the past three decades in programs worth more than $1 billion.
- $13 billion The amount of cost overrun in Defense programs from 1970 to 1979
- $12 billion The value of cost overruns from 1980 through 1989
- $15 billion The total overrun from 1990 through 1999
Source: Government accountability office
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