Is the Ratio of Investment between Research and Development to Production in Major Defense Acquisition Programs Experiencing Fundamental Change?

Is the Ratio of Investment between Research and Development to Production in Major Defense Acquisition Programs Experiencing Fundamental Change? PDF

Author: Rhys McCormick

Publisher: Rowman & Littlefield

Published: 2021-06-17

Total Pages: 70

ISBN-13: 1538140225

DOWNLOAD EBOOK →

With the advent of the information age, both commercial industry and the Department of Defense are moving towards complex R&D-intensive systems over the simpler, mass-produced systems of the industrial age. This CSIS report analyzes the historical trends in the relationship of production costs to development costs in complex acquisition programs. To understand this phenomenon, the study team examines it at two different levels. The first is the macro investment level where portfolio management trade-offs are made between aggregate development and procurement and between programs. The second level is individual programs where the ambitions of the program and the underlying technology shape the resources required for a program to complete development.

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

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

Author: Katherine V. Schinasi

Publisher: DIANE Publishing

Published: 2009-02

Total Pages: 21

ISBN-13: 1437906311

DOWNLOAD EBOOK →

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

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

Author:

Publisher:

Published: 2008

Total Pages: 22

ISBN-13:

DOWNLOAD EBOOK →

Since fiscal year 2000, DOD significantly increased the number of major defense acquisition programs and its overall investment in them. During this same time period, acquisition outcomes have not improved. Based on our analysis, total acquisition costs for the fiscal year 2007 portfolio of major defense acquisition programs increased 26 percent and development costs increased by 40 percent from first estimates both of which are higher than the corresponding increases in DOD s fiscal year 2000 portfolio. In most cases, the programs we assessed failed to deliver capabilities when promised often forcing warfighters to spend additional funds on maintaining legacy systems. Our analysis shows that current programs are experiencing, on average, a 21-month delay in delivering initial capabilities to the warfighter, a 5-month increase over fiscal year 2000 programs. Several underlying systemic problems at the strategic level and at the program level continue to contribute to poor weapon system program outcomes. At the strategic level, DOD does not prioritize weapon system investments and the department s processes for matching warfighter needs with resources are fragmented and broken. Furthermore, the requirements and acquisition processes are not agile enough to support programs that can meet current operational requirements. At the program level, programs are started without knowing what resources will truly be needed and are managed with lower levels of product knowledge at critical junctures than expected under best practices standards. In the absence of such knowledge, managers rely heavily on assumptions about system requirements, technology, and design maturity, which are consistently too optimistic. This exposes programs to significant and unnecessary technology, design, and production risks, and ultimately damaging cost growth and schedule delays.

Defense Acquisitions: Fundamental Changes Are Needed to Improve Weapon Program Outcomes

Defense Acquisitions: Fundamental Changes Are Needed to Improve Weapon Program Outcomes PDF

Author:

Publisher:

Published: 2008

Total Pages: 22

ISBN-13:

DOWNLOAD EBOOK →

Since 1990, GAO has designated the Department of Defense's (DOD) management of major weapon system acquisitions a high risk area. DOD has taken some action to improve acquisition outcomes, but its weapon programs continue to take longer, cost more, and deliver fewer capabilities than originally planned. These persistent problems-coupled with current operational demands-have impelled DOD to work outside of its traditional acquisition process to acquire equipment that meet urgent warfighter needs. Poor outcomes in DOD's weapon system programs reverberate across the entire federal government. Over the next 5 years, DOD expects to invest more than $357 billion on the development and procurement of major defense acquisition programs. Every dollar wasted on acquiring weapon systems is less money available for other priorities. This testimony describes DOD's current weapon system investment portfolio, the problems that contribute to cost and schedule increases, potential solutions based on past GAO recommendations, and recent legislative initiatives and DOD actions aimed at improving outcomes. It also provides some observations about what is needed for DOD to achieve lasting reform. The testimony is drawn from GAO's body of work on DOD's acquisition, requirements, and funding processes, as well as its most recent annual assessment of selected DOD weapon programs.

Sources of Weapon System Cost Growth

Sources of Weapon System Cost Growth PDF

Author: Joseph George Bolten

Publisher: Rand Corporation

Published: 2008

Total Pages: 117

ISBN-13: 0833042890

DOWNLOAD EBOOK →

Previous studies have shown that the Department of Defense (DoD) and the military departments have historically underestimated the cost of new weapon systems. Quantifying cost growth is important, but the larger issue is why cost growth occurs. To address that issue, this analysis uses data from Selected Acquisition Reports to examine 35 mature, but not necessarily complete, major defense acquisition programs similar to the type and complexity of those typically managed by the Air Force. The programs are first examined as a complete set, then Air Force and non-Air Force programs are analyzed separately to determine whether the causes of cost growth in the two groups differ. Four major sources of cost growth were identified: (1) errors in estimation and scheduling, (2) decisions made by the government, (3) financial matters, and (4) miscellaneous sources. Total (development plus procurement) cost growth, when measured as simple averages among the program set, is dominated by decisions, which account for more than two-thirds of the growth. Most decisions-related cost growth involves quantity changes (22 percent), requirements growth (13 percent), and schedule changes (9 percent). Cost estimation (10 percent) is the only large contributor in the errors category. Less than 4 percent of the overall cost growth is due to financial and miscellaneous causes. Because decisions involving changes in requirements, quantities, and production schedules dominate cost growth, program managers, service leadership, and Congress should look for ways to reduce changes in these areas.

Defense Acquisitions

Defense Acquisitions PDF

Author: United States Government Accountability Office

Publisher: Createspace Independent Publishing Platform

Published: 2017-09-13

Total Pages: 40

ISBN-13: 9781976351662

DOWNLOAD EBOOK →

The Department of Defense (DOD) is planning to invest $1.3 trillion between 2005 and 2009 in researching, developing, and procuring major weapon systems. How DOD manages this investment has been a matter of congressional concern for years. Numerous programs have been marked by cost overruns, schedule delays, and reduced performance. Over the past 3 decades, DOD's acquisition environment has undergone many changes aimed at curbing cost, schedule, and other problems. In order to determine if the policy DOD put in place is achieving its intended goals, we assessed the outcomes of major weapons development programs initiated under the revised policy. Additionally, we assessed whether the policy's knowledge-based, evolutionary principles are being effectively implemented, and whether effective controls and specific criteria are in place and being used to make sound investment decisions.

Defense Acquisitions: DoD Must Prioritize Its Weapon System Acquisitions and Balance Them with Available Resources

Defense Acquisitions: DoD Must Prioritize Its Weapon System Acquisitions and Balance Them with Available Resources PDF

Author: Michael J. Sullivan

Publisher: DIANE Publishing

Published: 2010

Total Pages: 19

ISBN-13: 1437914411

DOWNLOAD EBOOK →

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.

Defense Acquisitions: DoD Must Balance Its Needs with Available Resources and Follow an Incremental Approach to Acquiring Weapon Systems

Defense Acquisitions: DoD Must Balance Its Needs with Available Resources and Follow an Incremental Approach to Acquiring Weapon Systems PDF

Author: Michael J. Sullivan

Publisher: DIANE Publishing

Published: 2009-08

Total Pages: 25

ISBN-13: 1437915183

DOWNLOAD EBOOK →

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.

Lanterna Rally - Theme by Grace Themes