Unmanned Aircraft Systems: Global Hawk Cost Increase Understated in Nunn-McCurdy Report
Abstract
The Air Force's Nunn-McCurdy report to Congress understates the unit cost increase in that it does not include $400.6 million in known additional procurement costs. Including these costs results in procurement unit cost growth of 31 percent over the current baseline versus the 18 percent reported by the Air Force. In our view, this larger unit cost increase should have been reported to Congress with the required certification by the Secretary of Defense. The additional costs not included in the Air Force's reporting are for the purchase and installation of sensors, enhancements to communications equipment and ground stations, parts procurement, and other items required to achieve the system's initial, full-up capability. Air Force Global Hawk program budget documents included these costs before submitting the April 2005 Nunn-McCurdy notice to Congress and before the March 2005 publication of the annual Selected Acquisition Report. However, these costs were removed after the program office budget reporting documents were submitted to DOD offices in the Pentagon. Office of Secretary of Defense (OSD) officials explained that these costs had been recategorized as modifications that have historically been excluded from baseline measurements. We believe these costs should have been reported since they are needed to achieve the systems required capabilities. We are recommending that the Office of the Secretary of Defense revise the Global Hawk Selected Acquisition Report and take the necessary actions to comply with the Nunn-McCurdy legislation for reporting and certification.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 15, 2005
- Accession Number
- AD1176896
Entities
People
- Michael J. Sullivan
Organizations
- United States Government Accountability Office