DoD releases report on estimated acquisition program costs

////DoD releases report on estimated acquisition program costs

DoD releases report on estimated acquisition program costs

According to the latest Selected Acquisition Reports (SARs), the total costs of 87 selected DoD acquisition programs reached $1.6 trillion as of December 2009.  Since September 2008, the last reporting period (reporting in 2009 was not complete because an updated outyear program was not submitted with the FY2010 budget), the total cost of the covered programs has increased by $107 billion, or 7.2 percent.  This increase is primarily due to larger quantities, higher program costs, and stretch outs in scheduled development and procurement.  Lower escalation rates offset some of these increases.  Total program costs in the SARS reflect cost, schedule, and performance status.  Estimates of total program costs include actual costs to date and estimated future costs.  DoD prepares these congressionally-required reports annually, but also quarterly for programs that experience cost increases of 15 percent or more, and schedule delays of at least six months.  DoD also prepares quarterly reports for a program’s initial and final report, or for programs that are rebaselined during major milestone reviews.

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