Evaluation of the Unit Cost Exception Reports on the High Speed Anti-Radiation Missile.
GENERAL ACCOUNTING OFFICE WASHINGTON DC MISSION ANALYSIS AND SYSTEMS ACQUISITION DIV
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The High Speed Anti-Radiation Missile HARM is a joint Navy and Air Force program with the Navy designated lead service. Although a joint program, both services prepared unit cost exception reports. We reviewed four unit cost exception reports submitted by the Secretaries of the Navy and the Air Force explaining why unit costs for HARM increased. The reports submitted generally provided the unit cost information required by law. However, the reports did not present a complete picture of a joint Department of Defense program. Each service based its program estimates on different acquisition strategies even though only one strategy can be followed. In addition, the reports did not disclose other reasons contributing to the differences in unit costs or fully explain why costs increased. Since separate reports were submitted, they should have clearly disclosed all differences and any implication on costs. This review was made as part of our continuing examination of unit cost exception reports.
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