30 Mar '12, 9pm

No Surprises Among New Cost-Breach Programs

Only three new Pentagon programs breached the critical Nunn-McCurdy cost growth threshold this year, the Defense Department says, and all new breaches were due to the programs being severely cut back or canceled. Similar situations affected a number of other acquisition programs that showed significant cost changes over the past year. The annual Selected Acquisition Report (SAR) summaries were released March 30, covering 83 weapon programs in various stages of production. Nunn-McCurdy breaches occur primarily when a program's unit cost rises 25 percent or more, and can trigger a number of revalidation requirements or cancellation. The three new Nunn-McCurdy breaches for 2011 are: • The AIM-9X Block I air-to-air missile. The breach happened because procurement of Block I missiles was cut from 10,142 to 3,142 missiles as the program moved to Block II missiles. The reduction ...

Full article: http://www.defensenews.com/article/20120330/DEFREG02/3033...

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