Monday, September 15, 2008

DEFENSE BUDGET: Independent Review Is Needed to Ensure DOD's Use of Cost Estimating Tool for Contingency Operations Follows Best Practices

Highlights of GAO-08-982, a report to congressional committees

DEFENSE BUDGET: Independent Review Is Needed to Ensure DOD's Use of Cost Estimating Tool for Contingency Operations Follows Best Practices

Since the September 2001 terrorist attacks, Congress has provided about $800 billion as of July 2008 to the Department of Defense (DOD) for military operations in support of the Global War on Terrorism (GWOT). GWOT budget requests have grown in scope and the amount requested has increased every year. DOD uses various processes and the Contingency Operations Support Tool (COST) to estimate costs for these operations and to develop budget requests.

GAO assessed (1) how DOD uses COST and other processes to develop GWOT budget requests and (2) what actions DOD has taken to ensure COST adheres to best practices for cost estimation.

GAO interviewed DOD officials and others to determine how the services develop GWOT budget requests using COST and other processes. GAO also used its Cost Assessment Guide as criteria for best practices for cost estimation.

What GAO Recommends
GAO is recommending that DOD (1) arrange for an independent review of COST to ensure that the model adheres to best practices and (2) consider options for refining COST to better meet the needs of the services. DOD agreed with both of GAO’s recommendations.


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