Cost and Time Overruns in Major Defense Acquisition Programs
Abstract
Cost and time overruns in Major Defense Acquisition Programs (MDAPs) have become a high-profile problem attracting the interest of Congress, government and watchdog groups. According to the GAO, the 96 MDAPs from FY2008 collectively ran $296 billion over budget and were an average of 22 months behind schedule. President Obama's memo on government contracting of 4 March 2009 also highlighted this issue. This paper presents interim findings of research on the root causes of cost growth and schedule delays for MDAPs. The paper analyzes a series of variables -- namely, realism of baseline program cost estimates, government management and oversight, quantity and schedule changes, the role of prime contractors and lead military services, extent of competition, and contract structure -- to determine what factors might contribute to the observed cost overruns in the execution of MDAPs. The research draws on four primary data sources: Selected Acquisition Reports (SARs), Federal Procurement Data System (FPDS), and Department of Defense Budget Documents. This research is ongoing and will incorporate the 2010 SAR data. The final findings and policy recommendations will be presented at the May 2011 Naval Post Graduate School annual Acquisition Symposium. The presentation includes 11 briefing charts.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 30, 2010
- Accession Number
- ADA530059
Entities
People
- David Berteau
- Gregory Sanders
- Guy Ben-ari
- Joachim Hofbauer
Organizations
- Center for Strategic and International Studies