Hey Big Spender

The aggregate cost of Pentagon weapon systems shot up $56 billion (yes, with a "b"), or 3.5 percent overall, according to its latest acquisition reports made public yesterday.  The main reasons for the increase are "a net stretchout of development and procurement schedules" (+$22.6 billion), "higher program cost estimates" (+$18.9 billion), "an increase in support requirements" (+$14.3 billion), "the application of higher escalation rates" (+$7 billion) and engineering changes (+$3.2 billion).  Offsetting the increases were decreases in planned purchases of weapons (-$7.5 billion) and termination of the Land Warrior program (-$3.4 billion).

Some of the biggest increases in dollar amounts were with the F-35 Joint Strike Fighter (+$23.4 billion, or 8.5 percent); Ballistic Missile Defense System (+$17.4 billion, or 20 percent); V-22 Osprey (+$4.1 billion, or 8 percent); and Evolved Expendable Launch Vehicle (+$3.8 billion, or 12 percent).

The Defense Department said the C-130 Avionics Modernization Program, the Expeditionary Fighting Vehicle, the Guided Multiple Launch Rocket System, the Joint Air-to-Surface Standoff Missile, the Joint Primary Aircraft Training System, the Warfighter Information Network-Tactical and the since-cancelled Land Warrior program all suffered cost increases of either more than 25 percent to their current acquisition program baseline or more than 50 percent from their original baseline.

According to InsideDefense.com (paid reg. only), "The 1981 Nunn-McCurdy Act places caps on single-unit cost growth for all major DOD acquisition programs. The law requires DOD to certify programs are essential for national security if it plans to continue with those programs when they experience cost overruns."

"A determination of whether to certify the program[s] will be made no later than June 5, 2007, except Land Warrior, which will not require certification because the program was terminated," the Defense Department statement states.

-- Nick Schwellenbach

Comments

[Anay Shah]

What a waste - I agree. On a slightly less related note (though this could prevent the Pentagon from creating more expensive weapons once the resource-scarce countries get really desperate...)

Saturday April 14

1pm Rally!

stepitup.org
Downtown DC!

http://www.alternet.org/envirohealth/50330/
"Last week the U.S. Supreme Court ruled on what many are calling the most important environmental decision in a generation."

Be apart of the Revolution!

FYI:
http://www.carbonfund.org/site/
http://www.carbontrust.co.uk/default.ct

The Pentagon is just pissing money out the window on expensive weapons that don't work and then royally botching it on the very weapons needed for use in theater. They don't know how to handle money. Compare the above spending with the so-called "savings" from BRAC. Then look at where the bases are located. Here's a hint: their locations have nothing to do with national security.

First!