Defense Acquisitions: Fundamental Changes Are Needed to Improve Weapon Program Outcomes

Since 1990, GAO has designated the Department of Defenses (DOD) management of major weapon system acquisitions a high risk area. DOD has taken some action to improve acquisition outcomes, but its weapon programs continue to take longer, cost more, and deliver fewer capabilities than originally planned. These persistent problemscoupled with current operational demandshave impelled DOD to work outside of its traditional acquisition process to acquire equipment that meet urgent warfighter needs.>> Poor outcomes in DODs weapon system programs reverberate across the entire federal government. Over the next 5 years, DOD expects to invest more than $357 billion on the development and procurement of major defense acquisition programs. Every dollar wasted on acquiring weapon systems is less money available for other priorities.>> This testimony describes DODs current weapon system investment portfolio, the problems that contribute to cost and schedule increases, potential solutions based on past GAO recommendations, and recent legislative initiatives and DOD actions aimed at improving outcomes. It also provides some observations about what is needed for DOD to achieve lasting reform. The testimony is drawn from GAOs body of work on DODs acquisition, requirements, and funding processes, as well as its most recent annual assessment of selected DOD weapon programs.>> What GAO Found>> DOD is not receiving expected returns on its large investment in weapon systems. Since fiscal year 2000, DOD significantly increased the number of major defense acquisition programs and its overall investment in them. During this same time period, the performance of the DOD portfolio has gotten worse. The total acquisition cost of DODs 2007 portfolio of major programs under development or in production has grown by nearly $300 billion over initial estimates. Current programs are also experiencing, on average, a 21-month delay in delivering initial capabilities to the warfighteroften forcing DOD to spend additional funds on maintaining legacy systems.