Decisions Made During Program Execution as a Root Cause of Nunn-McCurdy Breaches

Abstract

The topic of this brief cannot be stated clearly without first noting aspects of the Nunn-McCurdy Act (1983) and the Weapon Systems Acquisition Reform Act (WSARA 2009). The Nunn-McCurdy Act establishes limits on cost growth, which, if exceeded, require the Secretary of Defense to at least notify the Congress and if the growth exceeds a critical limit to recertify the program. The Nunn-McCurdy Act defines two measures of cost growth: Program Acquisition Unit Cost (PAUC): the per unit produced cost of developing and procuring the program. Average Procurement Unit Cost (APUC): the program s procurement cost per unit produced. The Nunn-McCurdy Act requires measuring cost growth against each of two not necessarily distinct baselines: The original baseline, usually that established at Milestone B; and The current baseline, if the program has been rebaselined.

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Document Details

Document Type
Technical Report
Publication Date
May 16, 2012
Accession Number
ADA563607

Entities

People

  • David L. Mcnicol

Organizations

  • Institute for Defense Analyses

Tags

Communities of Interest

  • Air Platforms
  • Autonomy
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Aircrafts
  • Chemical Weapons
  • Classification
  • Contractors
  • Contracts
  • Cost Estimates
  • Costs
  • Engineering
  • Governments
  • Littoral Combat Ships
  • Military Procurement
  • Procurement
  • Program Management
  • Test And Evaluation
  • Unmanned Maritime Systems
  • Weapons

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis