U.S.-Israel Arrow/Aces Program. Cost, Technical, Proliferation, and Management Concerns

In an effort to determine whether the Arrow will provide the most cost-effective alternative for meeting Israels ballistic missile defense needs, we examined 1 the status of the Arrow anti-tactical ballistic missile effort, 2 Israeli estimates of the complete Arrow missile defense system acquisition and support costs, and 3 potential alternative U.S. theater missile defense systems. We obtained and analyzed U.S. and Israeli government information on the cost Arrow and ACES contracts as well as Israeli government estimates of the Arrow missile defense system costs, schedule, technical performance, and risks in the Arrow missile project. We gathered this information from BMDO, the Strategic Defense Command, and the government of Israel. We obtained data on alternative U.S. systems from the Patriot, Extended Range Interceptor, and Theater High Altitude Area Defense system project offices in Huntsville, Alabama, and BMDO in Washington, D.C. We also met with officials of the DOD Cost Analysis Improvement Group, DOD Strategic and Space Systems Office, and the Defense Technology Security Administration in Washington, D.C., and the Army Materiel Systems Analysis Activity, Aberdeen Proving Ground, Maryland, to discuss the feasibility of further assessing the Arrow and U.S. system alternatives. We also met with Lockheed and Raytheon officials. At the time of our review, fully assessed and validated test and cost data on the Arrow missile or Arrow-related systems were not available.