The UK spends approximately £20bn annually on military goods and services, around two-thirds of the total Defence Budge The challenges are constantly evolving, and there has been a succession of reforms to the acquisition process, each building on the last, and between them delivering significant improvement: more recent equipment projects show less tendency towards cost growth and time slippage; there is a more holistic, 'throughlife' approach to providing capability (Chapter 5); and a stronger and more mutually beneficial relationship with industry (Chapter 6). Around 98 per cent of major projects deliver the operational performance needed at the front line. But they also tend to increase in cost - by an average of 2.8 per cent each year - and to suffer delay averaging 5.9 months. More projects must be delivered to cost and time. An independent report into defence acquisition by Bernard Gray (available at: http://www.mod.uk/NR/rdonlyres/78821960-14A0-429E-A90A-FA2A8C292C84/0/ReviewAcquisitionGrayreport.pdf) concluded that overall plans for new equipment were too ambitious, and needed to be scaled down to match the funding likely to be available; and management of equipment portfolios must be improved. This strategy is built around those conclusions. The framework is designed so that the Ministry of Defence will make better decisions about what equipment (and wider services) to buy, how to ensure they are delivered on time, to cost and provide the desired performance; and in doing so, recognise and properly manage all the other strands (training, personnel, information, doctrine, organisation, infrastructure and logistics) needed to deliver and sustain effect on the ground.

For every weapons system being developed, the U.S. Department of Defense (DOD) must make a critical decision: Should the system go forward to full-scale production? The answer to that question may involve not only tens of billions of dollars but also the nation's security and military capabilities. In the milestone process used by DOD to answer the basic acquisition question, one component near the end of the process is operational testing, to determine if a system meets the requirements for effectiveness and suitability in realistic battlefield settings. Problems discovered at this stage can cause significant production delays and can necessitate costly system redesign. This book examines the milestone process, as well as the DOD's entire approach to testing and evaluating defense systems. It brings to the topic of defense acquisition the application of scientific statistical principles and practices.

The Department of Defense (DOD) relies extensively on contractors to equip and support the U.S. military in peacetime and during military operations, obligating more than $300 billion on contracts in FY2013.