DEFENSE ACQUISITIONS. Actions to Improve Navy SPAWAR Low-Rate Initial Production Decisions
Abstract
During our review of the Navy's Space and Naval Warfare (SPAWAR) Systems Command's fiscal year 2001 budget request, we found that many information technology systems were being procured and fielded in relatively large quantities sometimes exceeding 50 percent of the total during low-rate initial production and before completing operational testing. The primary purpose of low-rate initial production is to produce enough units for operational testing and evaluation and to establish production capabilities to prepare for full-rate production. Limiting initial production affords the opportunity to confirm the stability and soundness of a new system before producing larger quantities. Commercial and Department of Defense (DOD) best practices have shown that completing a system's testing prior to producing significant quantities will substantially lower the risk of costly fixes and retrofits. For major weapons systems, there are statutory provisions that limit the quantities of systems produced during low-rate initial production to the minimum quantity necessary and require justification for quantities exceeding 10 percent of total production. Although these provisions do not apply to non-major systems, DOD and Navy acquisition regulations encourage these programs to make use of the low-rate initial production concept where appropriate. Given the risks associated with acquiring high percentages of production quantities before completing operational testing, we reviewed the acquisitions of information systems at SPAWAR to determine (1) why information systems were being procured and fielded in large numbers before operational testing, (2) what effects this practice was having on SPAWAR and the fleet, and (3) what the Navy is doing to mitigate the risks associated with this practice.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 2001
- Accession Number
- ADA392973
Entities
Organizations
- United States Government Accountability Office