Is Nunn-McCurdy Working?

By Mandy Smithberger

In order to control and increase oversight of cost growth, the Nunn-McCurdy Amendment in the 1982 Defense Authorization Act requires the Pentagon to inform Congress when major weapon systems costs increase beyond certain thresholds.

But does it actually control or deter cost growth? From the Government Accountability Office (GAO):

Of the 47 programs that breached, as shown in table 3, 18 programs breached more than one time. Only one of the programs with multiple breaches—the Armed Reconnaissance Helicopter—was not recertified after a breach of the critical cost growth threshold. The Navy Area Theater Ballistic Missile Defense was also not recertified and was terminated because of poor performance and projected future cost and schedule problems. Other programs that have experienced a breach—including Advanced Seal Delivery System, Army Tactical Missile System-BAT, Comanche Reconnaissance Attack Helicopter, Land Warrior, and the VH-71 Presidential Helicopter Replacement—have also been terminated, but it is unclear whether the breach precipitated the termination. (Emphasis POGO's)

Is the primary purpose to restructure the programs to control cost? What role does cancellation play in accountability? Share your thoughts in the comments.

Mandy Smithberger is a POGO Investigator.

Comments

[Dfens]

Nunn-McCurdy is a joke. Hey, here's an idea, why don't we provide our defense contractors with a profit incentive to drag out development and jack development costs throught the roof, then we can all stand there scratching our asses trying to figure out why they did that to us one more time. Wake the hell up, people! The bureaucrats are not going to fix this problem for you. They have never had it so good as they do under this system of procurement. The defense contractors are making record profits year after year, somehow I don't think they'll be killing that golden egg laying goose either. You'll either start getting angry about this yourselves and enlisting organizations like POGO's help to get this procurement fiasco changed, or continue to get screwed.