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Accession Number:

AD1122550

Title:

Acquisition Policy, Cost Growth, and Cancellations of Major Defense Acquisition Programs

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Report Date:

2018-09-01

Abstract:

The Department of Defense (DoD) acquisition enterprise as a whole buys severalmillion different products. Some items (weapon systems, automated information systems)require large development efforts before there is an end item to buy, while other items arein effect bought from a catalog and shipped directly to a DoD organization (e.g., ahospital) or to a DoD supply depot.This study is concerned only with major defense acquisition programs (MDAPs). Itis further confined to "acquisition costs," which is a term of art defined as the sum ofResearch, Development, Test and Evaluation (RDT and E) funding and procurementfunding (that is, the cost of buying the system once it has been developed). Procurementcost is typically (although not invariably) on the order of five times RDT and E cost. As arough rule of thumb, acquisition cost for the portfolio of MDAPs in development orprocurement at a point in time ranges from 10 percent to 20 percent of total DoD funding.

Pages:

166

File Size:

2.65MB

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Distribution Statement:

Approved For Public Release

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