Amphibious Combat Vehicle Acquisition: Cost Estimate Meets Best Practices, but Concurrency between Testing and Production Increases Risk
United States Government Accountability Office Washington United States
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In 2011, the Marine Corps began the acquisition process for the ACV as a potential replacement for all or a portion of the AAV fleet, the primary way to transport marines from ship to shore under hostile and hazardous conditions. The ACV fleet is to have improved protected land mobility.The National Defense Authorization Act for Fiscal Year 2014 included a provision that GAO annually review and report on the ACV program until 2018. This report, GAOs fifth, assesses the extent to which 1 the cost estimate for the ACV programs first increment aligns with best practices and operations and support costs are accurately reported and 2 the programs schedule changes affect risk. GAO assessed the cost estimate for the program against best practices in GAOs Cost Estimating Guide. GAO also compared the programs previous and current schedule and test plans, and interviewed program officials. GAO recommends that DOD 1 adjust the key assumption used to calculate the estimated AAV operations and support costs presented in the ACV SARs and 2 postpone the ACV 1.1 production decision until early fiscal year 2019. DOD concurred with the first recommendation and non-concurred with the second, stating that delaying the decision could affect the ACV fielding schedule and other efforts. As discussed in the report, GAO stands by its recommendation because the approved ACV acquisition program baseline indicates it is acceptable for the production decision to occur as late as December 2018 which is in fiscal year 2019.
- Military Operations, Strategy and Tactics
- Combat Vehicles
- Economics and Cost Analysis