From The Washington Post, 2/2/08:
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/01/AR2008020103388.html?hpid=sec-business
Defense Dept.'s Weapons Programs Faulted
GAO Report Cites Cost Overruns, Years-Long Delays in Acquisitions
By Dana Hedgpeth
Washington Post Staff Writer
Saturday, February 2, 2008; Page D01
The Defense Department's major weapons programs have suffered cost
overruns in the billions of dollars, years-long delays and quality
shortfalls because of poor acquisition practices by the department,
according to a report released yesterday by the Government
Accountability Office.
The GAO warned that the cost of designing and developing weapons
systems could "continue to exceed estimates by billions of dollars" if
the Defense Department doesn't improve its acquisition practices.
The report, which focused on 11 troubled weapons programs, said
contractors had "poor practices" for systems engineering and relied on
"immature designs, inadequate testing, defective parts and inadequate
manufacturing controls."
The report said the Defense Department did not provide effective
oversight as projects were being developed, and often entered into
weapons-development contracts before engineering of the project had
been analyzed, driving up costs.
In addition, the report said, the Pentagon often pays the cost of the
contractors' mistakes, providing the companies with little incentive
to perform higher-quality work.
"Risk," the report said, "is not borne by the prime contractor, but by
DOD.
"Contractors have little incentive to utilize the best systems
engineering, manufacturing, and supplier quality practices to control
costs," according to the report, which was compiled by Michael
Sullivan, director of the GAO's acquisition and sourcing management.
The GAO also said that because the Pentagon often "sets overly
optimistic requirements for new weapon systems that require new and
unproven technologies, development cycles can take up to 15 years."
The weapon systems programs profiled in the report included General
Dynamics' Expeditionary Fighting Vehicle, an amphibious vehicle
designed to transport troops from ships to land.
It had such problems with its quality that it was delayed four years
at a cost of $750 million.
The report also looked at Lockheed Martin's F-22A Raptor fighter
plane, which was grounded during testing after cracks were found in
its canopy that stemmed from manufacturing problems.
Another program, the Wideband Global SATCOM communications satellite,
developed by Boeing Integrated Defense Systems, was 15 months late
because a supplier installed fasteners incorrectly, and would cost $10
million to fix.
Northrop Grumman's LPD 17 ship had faulty welds on piping in its
hydraulics.
"Had the problem not been discovered," the report said, "and weld
failure had occurred, the crew and the ship could have been
endangered."
The ship's manufacturing problems added $846 million to the project's
cost and delayed it by three years, according to the report.
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http://www.kxmb.com/News/204840.asp
WASHINGTON (AP)
President Bush is submitting a budget that would hold the line on or
even cut most domestic spending, including a three-percent chop in the
budget for Health and Human Services.
The Pentagon, by contrast would get an extra 35 billion dollars,
putting its core budget at 515 billion.
And that does not cover war costs.
Experts say the result would likely be a record deficit once
anticipated war costs for Iraq and Afghanistan are rolled in to the
three-trillion-dollar package.
Harry
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