Cost Estimation Lessons Learned for Future Submarine Acquisition Programs
Air War College -Air University Maxwell AFB United States
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The passage and signing of the Weapons Systems Reform Act of 2009 indicated the concern of the President and Congress that Major Defense Acquisition Programs MDAPs continue to experience cost problems. One of the most significant cost issues is the Navys 13 billion annual ship building budget. Indeed, the Government Accounting Office GAO reported it is not uncommon for estimates to be off by 20 to 50 percent of the acquisition cost1 and that the Navy exceeded the budget on a total of 41 ships for 4 billion.2 The Virginia class submarine program accounted for approximately 1 billion of this cost overrun on its first two hulls3.