Since 1990, the DoD mgmt. of major weapon system acquisitions has been designated a high-risk area. DoD has taken some action to improve acquisition outcomes, but its weapons programs continue to take longer, cost more, and deliver fewer capabilities than originally planned. Over the next 5 years, DoD plans to invest about $900 billion to develop and procure weapons systems -- the highest level of investment in two decades. This testimony describes DoD¿s current weapons system investment portfolio, the problems that contribute to cost and schedule increases, and the potential impacts of recent legislative initiatives and DoD actions aimed at improving outcomes. Charts and tables.

Defense Acquisitions: Better Weapon Program Outcomes Require Discipline, Accountability, and Fundamental Changes in the Acquisition Environment

Since FY 2000, the DoD has significantly increased the number of major defense acquisition programs and its overall investment in them. However, acquisition outcomes have not improved. In most cases, the programs failed to deliver capabilities when promised -- often forcing warfighters to spend additional funds on maintaining legacy systems. This testimony describes the systemic problems that have contributed to poor cost and schedule outcomes in DoD¿s acquisition of major weapon systems; recent actions DoD has taken to address these problems; and steps that Congress and DoD need to take to improve the future performance of DoD¿s major weapon programs. Illustrations.

A broad consensus exists that weapon system problems are serious, but efforts at reform have had limited impact. Last year, it was reported that DoD's portfolio of weapon programs experienced cost growth of $295 billion from first estimates, were delayed by an average of 21 months, and delivered fewer quantities and capabilities to the war-fighter than originally planned. This testimony describes the systemic problems that contribute to the cost, schedule, and performance problems in weapon system programs, recent actions that DoD has taken to address these problems, proposed reform legislation that has recently been introduced, and additional steps needed to improve future performance of acquisition programs. Charts and tables.

In 2006, the cumulative cost growth in DoD¿s portfolio of 96 major defense acquisition programs was $296 billion and the average delay in delivering promised capabilities to the warfighter was 22 months. These are very poor outcomes. The auditor has used metrics to review the mgmt. and health of these programs from within the framework of best practices. This testimony discusses: (1) ¿knowledge metrics,¿ used to determine how well programs manage tech., design, and manufacturing risks; (2) outcome metrics -- concerning cost, schedule, and capability -- that serve as ¿health indicators¿ of how well programs are being executed in terms of predicted outcomes; and (3) the prerequisites that must be met in order for a program¿s plans and goals to be realistic.

This review includes the feasibility and advisability of: (1) estab. a process in which the commanders of combatant commands provide input on the capabilities needed to accomplish their missions over 15 years or more; (2) estab. a materiel solutions process for addressing identified gaps in critical warfighting capabilities; (3) revising the acquisition process by estab. shorter, more frequent acquisition program milestones; (4) requiring the milestone decision authority to specify the period of time that will be required to deliver an initial operational capability; (5) estab. a new office to provide independent cost and performance est.; (6) requiring certifications of program status; and (7) modifying the role played by the Chiefs of Staff of the Armed Forces. Illus.

This report examines how well DoD is planning and executing its weapon acquisition programs. The report includes: (1) an analysis of the overall performance of DoD's 2008 portfolio of 96 major defense acquisition programs and a comparison to the portfolio performance at two other points in time -- 5 years ago and 1 year ago; (2) an analysis of current cost and schedule outcomes and knowledge attained by key junctures in the acquisition process for a subset of 47 weapon programs -- primarily in development -- from the 2008 portfolio; (3) data on other factors that could impact program stability; and (4) an update on changes in DoD's acquisition policies. Includes a one- or two-page assessment of 67 weapon programs. Illustrations.