DoD Reports Modest Increase in the Total Cost of Major Acquisition Programs
May 29, 2013
The total cost of 78 selected DoD major acquisition programs, reported in the December 2012 Selected Acquisition Report, increased by a modest $39.8 billion or 2.4 percent since December 2011. Total costs for these programs stood at $1.661 trillion.
The small increase reflects higher escalation rates (+$21.8 billion), increased planned quantities (+$21.6 billion), and program schedule stretch-outs (+$436 million). These cost increases were offset lightly by lower program cost estimates (-$2.6 billion) and reductions in support requirements (-$1.7 billion).
The Evolved Expendable Launch Vehicle (EELV) program experienced the largest program net cost increase (+$35.7 billion) due to an increase of 60 launch services (91 to 151) and an extension of the program life from 2020 to 2030. Other programs experiencing program cost increases included: Warfighter Information Network-Tactical (WIN-T) Increment 3 ($3.4 billion) due to procurement quantity increases; DDG-51 Arleigh Burke Class Guided Missile Destroyer (+$3.9 billion) due to an increase of two ships and associated costs and the application of revised escalation rates; and Standard Missile-6 (+$3.3 billion) due to an increase of 600 missiles and associated costs.