GAO Says Pentagon Programs’ Costs Soaring

The Government Accountability Office has issued a new report that says military cost overruns and over-commitment by the Pentagon will cost taxpayers. The GAO says, “The Department of Defense [DOD] expects the cost to develop and procure the major weapon systems in its current portfolio to total $1.6 trillion. With increased competition for funding within DOD and across the federal government, effectively managing these acquisitions is critical. Yet DOD programs too often experience poor outcomes--like increased costs and delayed fielding of needed capabilities to the warfighter.” Translation: lotsa of buck but not many bangs.

The GAO also said, “DOD often does not commit full funding to develop its major weapon systems when they are initiated, despite the department's policy to do so. For a majority of the weapon system programs GAO reviewed, costs have exceeded the funding levels initially planned for and reflected in the Future Years Defense Program (FYDP)--DOD's investment strategy. To compensate for these shortfalls, DOD makes unplanned and inefficient funding adjustments, like moving money from one program to another, deferring costs into the future, or reducing procurement quantities. DOD's flawed funding process is largely driven by decision makers' willingness to accept unrealistic cost estimates and DOD's commitment to more programs than it can support.”

One example the GAO cited was the WIN-T tactical communications system. “The Army assumed that the radios and software needed to support the WIN-T system would be commercially available. However, once system development started, the Army learned that the radios and software would require significantly more development and integration than initially anticipated. Further, the Army assumed that WIN-T would be able to meet its portion of the FCS program requirements. However, subsequent changes in the FCS requirements contributed to the need to restructure the WIN-T program.”

Another was the Air Force’s Global Hawk drone. “The Air Force assumed that validated warfighter requirements could be met with minor additional development to a smaller version, subsequently designated the RQ-4A. However, 1 year after initiating both system development and low-rate initial production, it was determined that a larger airframe and additional, unproven technologies would be needed. As a result, DOD restructured the acquisition strategy to include a second model—designated RQ-4B—tripling development costs and extending the development cycle from 7 years to 12 years.”

A new Congress will take office in January, and it will be facing demands from the Pentagon for more spending. It will face two wars in Asia as well as concerns about terrorism around the globe. One of the most effective things it can do is make sure that the money taxpayers give the Pentagon are well-spent. According to the GAO, the DOD has some work to do on that front.

© Copyright 2008 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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