April 1, 2010
The Department of Defense (DoD) has released details on major defense acquisition program cost, schedule, and performance changes since the September 2008 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the December 2009 reporting period. [Note: DoD did not submit a full complement of SARs for fiscal 2009 because the fiscal 2010 President's Budget did not include updated outyear funding information.]
SARs summarize the latest estimates of cost, schedule, and performance status. These reports are prepared annually in conjunction with submission of the President's Budget. Subsequent quarterly exception reports are required only for those programs experiencing unit cost increases of at least 15 percent or schedule delays of at least six months. Quarterly SARs are also submitted for initial reports, final reports, and for programs that are rebaselined at major milestone decisions.
The total program cost estimates provided in the SARs include research and development, procurement, military construction, and acquisition-related operation and maintenance (except for pre-Milestone B programs, which are limited to development costs pursuant to 10 USC §2432). Total program costs reflect actual costs to date as well as future anticipated costs. All estimates include anticipated inflation allowances.
The current estimate of program acquisition costs for programs covered by SARs for the prior reporting period (September 2008) was $1,648,292.3 million. After adding the cost changes for H-1 Upgrades in December 2008 and E-2D in June 2009 and subtracting the costs for four final reports for Armed Reconnaissance Helicopter (ARH), Future Combat Systems (FCS), Small Diameter Bomb I (SDB I), and Presidential Helicopter (VH-71) during fiscal 2009, the June 2009 adjusted current estimate of program acquisition costs is $1,485,068.0 million.
Current Estimate
($ in Millions)
September 2008 (91 programs)
$ 1,648,292.3
Plus cost changes for December 2008 H-1 Upgrades SAR
(submitted to Congress but not previously reported
3,259.4
December 2008 (91 programs)
$1,651,551.7
Plus cost changes for June E-2D SAR
(submitted to Congress but not previously reported)
+1,600.3
June 2009 (91 programs)
$1,653,152.0
Less final reports on four programs (ARH, FCS, SDB I, and VH-71)
-168,084.0
June 2009 Adjusted (87 programs)
$1,485,068.0
Changes Since Last Report:
Economic
$ -23,980.3
Quantity
+44,851.5
Schedule
+8,973.4
Engineering
+43.0
Estimating
+51,338.8
Other
+579.9
Support
+25,434.6
Net Cost Change
$ +107,240.9
Plus initial procurement cost estimates for BMDS (Ballistic Missile
Defense System); previous reports were limited to development costs
pursuant to section 2432 of title 10, United States Code
+9,520.3
Plus BMDS Research, Development, Test, and Evaluation (RDT&E) and
Military Construction (MILCON) costs estimates for fiscal 2014-2015; previous reports limited development and construction costs to fiscal 2013
+14,340.1
December 2009 (87 programs)
$1,616,169.3
For the December 2009 reporting period, there is a net cost increase of $107,240.9 million or +7.2 percent for the programs that have reported previously. The cost increase is due primarily to a net increase in planned quantities (+$44,851.5 million), higher program cost estimates (+$51,338.8 million), an increase in support requirements (+$25,434.6 million), and a net stretchout of development and procurement schedules (+$8,973.4 million). These increases are partially offset by the application of lower escalation rates (-$23,980.3 million). Further details of the most significant changes are summarized below by program.
New SARs
The DoD has submitted initial SARs for the following programs for the December 2009 reporting period. These reports do not represent cost growth. Baselines established on these programs will be the point from which future changes will be measured.
Program
Current Estimate
($ in Millions)
AMF JTRS (Airborne and Maritime Fixed Joint Tactical Radio System)
$9,067.1
ASIP (Airborne Signals Intelligence Payload)
508.0
BAMS (Broad Area Maritime Surveillance)
15,021.5
ER/MP UAS (Extended Range/Multi-Purpose Unmanned Aircraft System)
5,220.8
IAMD (Integrated Air and Missile Defense)
5,791.6
INC 1 E-IBCT (Increment 1 Early-Infantry Brigade Combat Team)
3,166.7
JHSV (Joint High Speed Vessel)
3,935.5
JPALS (Joint Precision Approach and Landing System)
987.0
PREDATOR (Unmanned Aircraft System)
3,321.3
REAPER (Unmanned Aircraft System)
11,834.8
WIN-T INC 3 (Warfighter Information Network-Tactical Increment 3)
15,963.7
Total
$74,818.0
Summary Explanations of Significant SAR Cost Changes
(As of Dec. 31, 2009)
Nunn-McCurdy Breaches
For the December 2009 reporting period, there are seven programs with critical or significant Nunn-McCurdy unit cost breaches to their current or original Acquisition Program Baseline (APB). Pursuant to section 2433 of title 10, United States Code, for those programs with significant breaches, Congressional notifications are required, as well as detailed unit cost breach information in the SAR. For those programs with critical breaches, notifications and unit cost breach information are also required. In addition a certification determination by the Under Secretary of Defense for Acquisition, Technology & Logistics must be made no later than June 1, 2010.
Critical Breaches: (Unit cost increases of 25 percent or more to the current APB or of 50 percent or more to the original APB)
AB3 (Apache Block III) - The Program Acquisition Unit Cost (PAUC) increased by 25.5% and the Average Procurement Unit Cost (APUC) increased by 31.2% to the current APB due to a procurement quantity increase of 56 aircraft (from 634 to 690) in the fiscal 2011 President's Budget. The 634 aircraft will be remanufactured, while the additional 56 will be new build aircraft at a cost much greater than the remanufactured aircraft production program. The 56 aircraft are being added to stand up a new Combat Aviation Brigade, as called for in the Quadrennial Defense Review (QDR), to help meet global demand for these types of assets that are consistently in high demand and have proven to be key enablers of tactical and operational success.
ATIRCM/CMWS (Advanced Threat Infrared Countermeasure/Common Missile Warning System) - The ATIRCM/CMWS, a subsystem to a host aircraft, consists of three subprograms: CMWS, ATIRCM Quick Reaction Capability (QRC), and the next generation ATIRCM, which is called Common Infrared Countermeasure (CIRCM). The program was recently split into sub-programs to permit more visibility into the costs, schedule and performance of each element of the larger program. An OSD-lead assessment of Airborne Self Protection capabilities showed that the reliability of the ATIRCM units fielded to date was poor and hence the quantity was reduced from 2,618 to 208 units, leaving only those needed for the immediate QRC. Accordingly, the PAUC for the ATIRCM QRC subprogram increased 290.6% and the APUC increased 281.5% for the ATIRCM QRC subprogram to the original APB.
DDG 1000 - The PAUC increased 86.5% and the APUC increased 24.9% to the current and original APBs due to the truncation of the number of ships in the program. The original program baseline was for a ten-ship program. That quantity was reduced to seven ships in the fiscal 2009 President's Budget. However, it did not impact unit costs enough to trigger a Nunn-McCurdy breach. The quantities were further reduced in the fiscal 2011 President's Budget to the program's current profile of three ships. Neither reduction was a result of poor program performance. However, the total quantity reduction from ten to three ships resulted in a Nunn-McCurdy breach.
F-35 (Joint Strike Fighter) - The PAUC increased 57.2% and the APUC increased 57.2% to the original APB to reflect the average unit price for the restructured JSF program, as estimated by the OSD Cost Assessment and Program Evaluation (CAPE)-led independent Joint Estimate Team (JET). Specifically, in 2001, the average procurement unit cost for the JSF was estimated at $50 million base year 2002 dollars or $59 million in base year 2010 dollars. This is now estimated to fall within a range of $79 million to $95 million in base year 2002 dollars or $93 million to $112 million in base year 2010 dollars. This is a 57% to 89% increase from the original baseline. The reasons for the Unit Cost Growth included larger-than-planned development costs driven by Short Take-Off and Vertical Landing (STOVL) variant weight growth and a longer forecasted development schedule; increase in labor and overhead rates; degradation of airframe commonality; lower production quantities; increases in commodity prices (particularly titanium); major subcontractor cost growth; and the impact of revised inflation indices. In addition, factors that were driven by substantially higher contractor change traffic (i.e., changes in design not resulting from changes in requirements or capability), which led to increased engineering and software staffing; extended manufacturing span times; and delayed delivery of aircraft to flight test, led to a further slip of the development and flight test program. The Independent Manufacturing Review Team (IMRT) recommended that the program adopt a somewhat flatter and smoother ramp. The JET II accepted this revised ramp and then moved it later in time in accordance with the delayed progress of the development program to balance manufacturing, schedule, and cost risk. Overall, no JSF reviews to-date (JET I from 2008, JET II , or the IMRT) have discovered any fundamental technological or manufacturing problems with the JSF program, or any change in the aircraft's projected military capabilities.
RMS (Remote Minehunting System) - The PAUC increased 79.5% and the APUC increased 54.6% to the current and original APBs as a result of a reduction in production quantities, the use of an incorrect average unit cost as a basis of estimate in the 2006 program baseline calculation, and an increase in development costs needed to address reliability issues. The Navy re-evaluated the capabilities of the Anti-Submarine Warfare (ASW) Mission Package for the Littoral Combat Ship (LCS) and decided to eliminate the Remote Multi-Mission Vehicle (RMMV) from the ASW Mission Package. This decision reduced the total number of RMMV production units from the program baseline quantity of 108 to the current quantity of 54. The increase in development costs was needed to address reliability problems, which arose during an operational assessment in 2008.
WGS (Wideband Global Satellite Communications) - The APUC increased 27.2% to the current APB and 39.5% to the original APB. The original WGS acquisition strategy, approved in June 2000, called for a commercial-like Firm Fixed Price (FFP) competitively awarded contract with options for six satellites. The original program was baselined for 3 satellites assuming commercial pricing. At the time of the original WGS 1-6 contract award, a strong commercial market for wideband communication satellites was expected. Production options for WGS 1-3 were exercised, and the first satellite launched on October 10, 2007. Due to limited resources and other priorities, the contract options for satellites 4-6 were not exercised before they expired.
Subsequent decisions resulted in the department deciding to award another contract for WGS 4-6 Advanced Procurement and Production. A production break of approximately three years was introduced between WGS 3 and WGS 4. Further, following the acquisition of WGS 1-3, the commercial communication satellite market took a significant downturn, and the WGS X-band phased array transmit and receive system and digital channelizer capability were no longer available commercially. More recently, the department directed the procurement of additional satellite vehicles to support and maintain an eight satellite constellation. These satellites will follow a second break in production estimated at two years which will require re-establishing the supplier and contractor base and addressing issues with parts obsolescence.
Significant Breaches: (Unit cost increases of 15 percent, but less than 25 percent, to the current APB or of 30 percent, but less than 50 percent, to the original APB)
C-130 AMP (Avionics Modernization Program) - The PAUC increased 7.3% and the APUC increased 17.9% to the current APB because the program amended its strategy to provide for depot installs during the Future Years Defense Program (FYDP) and amended its estimate for the level of spares. It also added costs for training systems not previously included, adjusted for current inflation indices, and incurred a one-year gap in production.
Other Program Cost Changes
Army:
Longbow Apache - Program costs increased $1,921.5 million (+17.2%) from $11,183.0 million to $13,104.5 million, due primarily to a quantity increase of 85 aircraft from 671 to 756 aircraft (+$542.7 million) and associated schedule, engineering, and estimating allocations* (+$1,135.7 million). There was also an increase in engineering costs for six battalions of Apache Video from Unmanned Aviation Systems for Interoperability Teaming Level II (VUIT-2) (+$262.5 million).
WIN-T (Warfighter Information Network-Tactical) Increment 2 - Program costs increased $1,126.9 million (+29.1%) from $3,870.8 million to $4,997.7 million, due primarily to a quantity increase of 323 communications nodes from 1,893 to 2,216 nodes (+$527.4 million) and higher unit costs for installation kit (A-Kit) purchases for the Stryker Brigade Combat Teams and armored vehicles (+$245.7 million). There were additional increases in systems engineering, program management, and testing estimates, as well as additional contractor testing requirements for the JC4ISR radio (+$250.7 million), and an increase in initial spares based on updated mean time between failure data for system components (+$118.0 million).
Navy:
CH-53K - Program costs increased $6,817.8 million (+36.4%) from $18,708.3 million to $25,526.1 million, due primarily to a quantity increase of 44 aircraft from 156 to 200 aircraft (+$3,108.9 million), and increases in other support costs (+$749.7 million) and initial spares (+$456.2 million) associated with the quantity increase. Costs also increased due to a three-year delay in the procurement profile shifting initial purchases from fiscal 2013 to fiscal 2016 (+$1,148.4 million), schedule growth attributable to funding constraints (+$669.6 million), and an increase in the cost estimate for the development contract (+$611.2 million).
CVN 78 - Program costs increased $5,426.4 million (+15.5%) from $35,119.1 million to $40,545.5 million, due primarily to the shift from a four-year to five-year build cycle (+$4,131.2 million), which placed the program on a more fiscally sustainable path while continuing to support a minimum of 11 aircraft carriers through fiscal 2040. Additional increases resulted from revised cost estimates for the Electromagnetic Aircraft Launch System (EMALS) (+$1,292.6 million), platform non-recurring engineering (+$350.0 million), and labor and material projections (+$311.7 million), a stretch-out of the procurement buy profile (+$520.6 million), and the application of revised escalation indices (+$301.8 million). These increases were partially offset by decreases resulting from inflation and other miscellaneous adjustments (-$933.1 million) and a shipbuilding reduction across the program (-$627.0 million).
DDG 51 - Program costs increased $17,651.4 million (+28.1%) from $62,756.3 million to $80,407.7 million, due primarily to a quantity increase of nine ships from 62 to 71 ships (+$9,209.6 million) and associated schedule, engineering, and estimating allocations* (+$3,177.0 million), and outfitting and post delivery costs associated with the quantity increase (+$5,129.4 million).
EA-18G - Program costs increased $2,901.0 million (+33.5%) from $8,649.1 million to $11,550.1 million, due primarily to a quantity increase of 29 aircraft from 85 to 114 aircraft (+$2,342.5 million) and associated schedule and estimating allocations* (+$7.8 million), and an increase in support costs for 26 expeditionary aircraft associated with the quantity increase (+$547.6 million).
F/A-18 E/F - Program costs increased $1,746.6 million (+3.8%) from $46,344.8 million to $48,091.4 million, due primarily to a quantity increase of 22 aircraft from 493 to 515 aircraft (+$1,872.9 million), and increases in other support costs and initial spares associated with the quantity increase (+$427.9 million). These increases were partially offset by a reduction in the estimate for foreign military sales (-$198.3 million) and the estimate for actual contract costs and efficiencies (-$208.6 million), and the application of revised escalation indices (-$131.9 million).
Joint MRAP (Joint Mine Resistant Ambush Protected) - Program costs increased $13,876.6 million (+61.9%) from $22,415.0 million to $36,291.6 million, due primarily to a quantity increase of 7,508 vehicles from 15,374 to 22,882 vehicles (+$7,415.1 million), and increases in other support costs (+$5,821.0 million) and initial spares (+$1,346.6 million) associated with the quantity increase. In addition, costs increased due to a revised estimate for developmental and operational testing through fiscal 2016 (+$230.5 million). These increases were partially offset by the deletion of previously reported acquisition-related Operations and Maintenance costs that are no longer considered part of the acquisition program (-$964.0 million).
JSOW (Joint Stand-Off Weapon) Unitary - Program costs increased $488.9 million (+17.9%) from $2,725.1 million to $3,214.0 million, due primarily to the incorporation of the JSOW Unitary missile front-end seeker obsolescence engineering change proposal and the addition of the Strike Common Weapon datalink.
LCS (Littoral Combat Ship) - Program costs increased $883.9 million (+31.0%) from $2,848.6 million to $3,732.5 million, due to additional development and support for the mission package test program, seaframe testing, and crew training (+$241.5 million). There were also increases for the procurement of additional mission packages (+$183.6 million), a revised estimate for development, planning, and execution of Flight 0 and Flight 0+ (+$157.2 million), a revised estimate for seaframe pricing due to cost growth (+$131.5 million), changes to mission module development and phasing (+$77.8 million), additional funding for a technical data package (+$59.8 million), and the re-phasing of work due to a change in the schedule for Flight 0 (+$44.8 million).
LHA 6 - Program costs increased $3,458.9 million (+102.7%) from $3,367.9 million to $6,826.8 million, due primarily to the addition of one ship from one to two ships.
LPD 17 - Program costs increased $4,417.5 million (+31.0%) from $14,241.7 million to $18,659.2 million, due primarily to a quantity increase of two ships from 9 to 11 ships (+$2,075.5 million) and associated schedule, estimating, and other allocations* (+$1,291.7 million), and additional full funding and outfitting and post delivery increases associated with the quantity increase (+$484.2 million). Costs also increased due to the addition of cost to complete funding for ships 22 through 25 (+$239.0 million), Hurricane Katrina supplemental funding for ships 20 through 24 (+$192.7 million), and special transfer authority and outfitting and post delivery requirements for ships 21 through 25 (+$132.0 million).
MH-60R - Program costs increased $2,101.6 million (+17.3%) from $12,139.4 million to $14,241.0 million, due primarily to a quantity increase of 46 helicopters from 254 to 300 helicopters (+$1,385.4 million) and associated schedule, engineering, and estimating allocations* (+$171.6 million), and increases in other support costs and initial spares associated with the quantity increase (+$257.3 million). There was an additional increase due to a revised cost estimate for 23 additional airborne low frequency sonars (+$282.8 million).
P-8A - Program costs increased $1,288.0 million (+3.9%) from $32,852.9 million to $34,140.9 million, due primarily to a quantity increase of nine aircraft from 113 to 122 aircraft (+$1,620.6 million) and associated schedule and estimating allocations* (+$50.0 million), and an increase in other support costs associated with the quantity increase (+130.5 million). Costs also increased in estimating due to commercial aircraft pricing, avionics maturation, and aircraft design changes (+$505.2 million); revised assumptions for labor rates, learning curves, new material escalation indices, and other minor estimating changes (+$70.1 million); additional effort for test and evaluation, resolution of aircraft weight growth, and changes in the electro-optical infrared subsystem (+$83.7 million); increased scope to correct deficiencies (+$210.8 million); and costs resulting from the Boeing machinists union strike and rate increases (+$73.0 million). These increases were partially offset by the application of revised escalation indices (-$863.3 million), a decrease in initial spares in accordance with the long-term support strategy (-$278.5 million), acceleration of the procurement buy profile eliminating fiscal 2018 and fiscal 2019 (-$187.8 million), and removal of the Increment 2 development (-$147.9 million).
SM-6 (Standard Missile-6) - Program costs increased $645.6 million (+10.8%) from $5,954.4 million to $6,600.0 million, due to an increase in known missile component costs and refinement of the production cost estimate (+$563.8 million), an increase to fully fund initial spares (+$225.3 million), and a stretch-out of the procurement buy profile from fiscal 2010 to fiscal 2019 (+$30.6 million). These increases were partially offset by the application of revised escalation indices (-$174.4 million).
T-AKE - Program costs increased $1,174.0 million (+20.5%) from $5,715.2 million to $6,889.2 million, due primarily to a quantity increase of two ships from 12 to 14 ships (+$930.4 million) and associated schedule and estimating allocations* (+$275.2 million).
Tactical Tomahawk - Program costs increased $2,510.1 million (+57.4%) from $4,375.3 million to $6,885.4 million, due primarily to a quantity increase of 1,448 missiles from 3,292 to 4,740 missiles (+$1,373.2 million) and associated schedule, engineering, and estimating allocations* (+$381.0 million), and hardware costs for capsules and canisters for missiles procured in fiscal 2014 through fiscal 2020 associated with the quantity increase (+$433.2 million). There were also increases for additional production and systems engineering support in fiscal 2014 through fiscal 2020 (+$243.0 million) and for changes in estimating assumptions for efficiencies in production line costs (+$94.3 million).
V-22 - Program costs decreased $1,327.9 million (-2.5%) from $54,226.9 million to $52,899.0 million, due primarily to duplication of obsolescence costs erroneously included in both procurement and operations and support (-$1,281.6 million), associated erroneous inclusion of modifications under procurement (-$367.3 million), the application of revised escalation indices (-$758.6 million), and realignment of Integrated Defensive Electronic Counter Measures funding from Special Operations Command to the Air Force (-$96.2 million). These decreases were partially offset by increases from updated learning curves and material cost adjustments (+$608.4 million), a revised estimate for completion of the development program (+$182.3 million), an updated support equipment estimate (+$380.8 million), the addition of obsolescence ancillary equipment and cost reduction initiative investments (+$218.8 million), and an increase in initial spares (+$193.1 million).
VTUAV (Vertical Takeoff and Land Tactical Unmanned Air Vehicle) - Program costs increased $466.5 million (+21.6%) from $2,158.3 million to $2,624.8 million, due primarily to an increase in air vehicle unit cost resulting from extending procurement at the minimum sustaining rate (+$279.6 million) and the stretch-out of the ground control station and air vehicle procurement profiles from fiscal 2010 to beyond fiscal 2015 (+$164.9 million). There were also increases for initial spares due to component cost increases (+$54.4 million), for integration costs to support an additional ship class (+$35.9 million), and for overseas contingency operations funds to purchase equipment for land-based operations (+$13.4 million). These increases were partially offset by a decrease in other support costs (-$29.3 million) and the application of revised escalation indices (-$49.9 million).
Air Force:
AEHF (Advanced Extremely High Frequency) - Program costs increased $2,510.3 million (+25.3%) from $9,938.6 million to $12,448.9 million, due primarily to a quantity increase of two satellites from four to six satellites (+$2,623.7 million). This increase was partially offset by decreases due to an adjustment to the cost estimate (-$20.0 million), Congressional general reductions (-$19.2 million), a contractor to civilian personnel conversion (-$11.8 million), and the application of revised escalation indices (-$53.9 million).
AMRAAM (Advanced Medium Range Air-to-Air Missile) - Program costs increased $6,402.7 million (+43.0%) from $14,880.6 million to $21,283.3 million, due primarily to a quantity increase of 3,887 missiles from 13,953 to 17,840 missiles (+$3,775.7 million) and associated schedule, engineering, and estimating allocations* (+$457.7 million). Costs also increased due to software integration efforts (+504.4 million), the realignment of Navy and Air Force missile procurement during fiscal 2008 through fiscal 2024 (+$918.6 million), an increase in telemetry equipment to support training (+$422.9 million), and increases in tooling and test equipment, diminishing manufacturing sources requirements, and production/test support resulting from the extension of the production program from fiscal 2013 to fiscal 2024 (+$280.4 million).
C-17A - Program costs increased $7,264.1 million (+11.7%) from $62,306.7 million to $69,570.8 million, due primarily to a quantity increase of 33 aircraft from 190 to 223 aircraft (+$4,314.0 million) and associated schedule, engineering, estimating, and other allocations* (+$2,844.6 million).
C-130J - Program costs increased $3,148.8 million (+26.2%) from $12,029.3 million to $15,178.1 million, due primarily to a quantity increase of 34 aircraft from 134 to 168 aircraft (+$2,749.3 million), and increases in other support costs (+$972.8 million) and initial spares (+$394.7 million) associated with the quantity increase. These increases were partially offset by decreases for actual contract values for aircraft costs (-$541.5 million), to properly account for advanced procurement that was erroneously reflected in the previous report (-$246.0 million), and for funding reductions in fiscal 2010 through fiscal 2015 (-$140.9 million).
C-5 AMP (Avionics Modernization Program) - Program costs decreased $200.2 million (-14.3%) from $1,405.3 million to $1,205.1 million, due primarily to a quantity decrease of 20 aircraft from 112 to 92 aircraft (-$112.9 million), and decreases in other support costs and initial spares associated with the quantity decrease (-$73.3 million). There was also a decrease for prior year actuals for kit buys and installations (-$12.6 million).
F-22 - Program costs increased $2,174.2 million (+3.4%) from $64,539.9 million to $66,714.1 million, due primarily to an increase in the modernization program estimate (+$1,449.7 million), and a quantity increase of four aircraft from 184 to 188 aircraft (+$486.3 million) and associated schedule and estimating allocations* (+$1.9 million). There was also an increase in other support costs associated with the quantity increase and F-22 line shutdown planning and implementation (+$423.6 million). These increases were partially offset by Congressional reductions and withholds (-$161.0 million).
GBS (Global Broadcast Service) - Program costs increased $211.4 million (+26.2%) from $805.5 million to $1,016.9 million, due primarily to a quantity increase of 1,105 Army, Navy, and Air Force receive suites from 1,121 to 2,226 receive suites (+$150.1 million) and associated schedule, engineering, and estimating allocations* (+$44.0 million).
Global Hawk (RQ-4A/B) - Program costs increased $3,967.6 million (+40.7%) from $9,740.7 million to $13,708.3 million, due primarily to a quantity increase of 23 aircraft from 54 to 77 aircraft (+$1,522.8 million) and associated schedule, engineering, and estimating allocations* (+$856.0 million). Other increases resulted from refinement of program estimates for ground station re-architecture and Multi-Platform Radar Technology Insertion Program (MP-RTIP) sensor integration (+$170.3 million); refinement of estimates for MP-RTIP and Airborne Signals Intelligence Payload (ASIP) sensor procurement (+$582.7 million); an increase in initial spares to support an increase in planned Combat Air Patrols (+$517.2 million); and engineering increases associated with revised technical definitions (+$246.2 million).
JASSM (Joint Air-to-Surface Standoff Missile) - Program costs increased $1,645.5 million (+27.1%) from $6,065.8 million to $7,711.3 million, due primarily to an estimating cost increase for missile hardware resulting from reduced annual quantity buys and a break in the production line (+$992.4 million). Additionally, cost increases occurred due to an engineering increase for test requirements and reliability programs (+$448.6 million), and a decrease in procurement buys in fiscal 2006 through fiscal 2020 and extension of the production program from fiscal 2020 to fiscal 2025 (+$256.0 million).
NPOESS (National Polar-Orbiting Operational Environmental Satellite System) - Program costs decreased $5,330.6 million (-47.9%) from $11,140.2 million to $5,809.6 million, due primarily to a quantity decrease of four satellites (from four to zero satellites) (-$5,737.6 million) resulting from a program restructure in which the Department of Defense, the Department of Commerce, and the National Aeronautics and Space Administration will no longer jointly acquire NPOESS. There was also a decrease due to the application of revised escalation indices (-$181.9 million). These decreases were partially offset by an updated estimate of the cost of the restructured program (+$582.1 million).
SBIRS (Space-Based Infrared System) High - Program costs increased $3,561.1 million (+30.8%) from $11,554.5 million to $15,115.6 million, due primarily to a quantity increase of two Geosynchronous Earth Orbit (GEO) satellites from four to six satellites (+$2,164.1 million). There were also increases resulting from the realignment of missile procurement costs to the support category (+$162.8 million), a delay in the GEO 1 launch from 2009 to 2010 (+$372.8 million), revised estimates for implementation of a new ground acquisition strategy (+$393.8 million), and incorporation of the technology maturation and parts obsolescence effort (+$384.0 million).
DoD:
Ballistic Missile Defense System (BMDS) - Program costs decreased $10,068.9 million (-9.7%) from $102,912.4 million to $92,843.5 million, due primarily to the following: cancellation of the Kinetic Energy Interceptor and Multiple Kill Vehicle Program (-$5,304.2 million); cancellation of the Airborne Laser Program (-$2,634.7 million); elimination of the Space Tracking and Surveillance System follow-on constellation (-$1,972.0 million); transition of the sensor content to procurement (-$1,223.7 million); general infrastructure reductions (-$1,216.7 million); revised estimates for special classified programs (-$1,155.4 million); application of revised escalation indices (-$1,169.1 million); reduced Ground-Based Interceptor inventory due to the change of European site architecture (-$88.0 million); and infrastructure reductions (-$1,216.7 million). These decreases were partially offset by the change in European architecture to Aegis Ashore (+$2,493.5 million) and the consolidation of targets and revised Integrated Master Test Plan (+$1,646.4 million). In addition, procurement costs of $9,520.3 million, which were previously excluded from the SAR due to its pre-Milestone B Research, Development, Test, and Evaluation (RDT&E)-only status pursuant to section 2432 of title 10, United States Code, were added as an adjustment to the program in accordance with Congressional direction. RDT&E and Military Construction (MILCON) costs of $14,340.1 million were also added as adjustments to reflect the addition of two years to this program, which is considered Future Years Defense Program (FYDP) limited and has been allowed to add two years of cost to the program with each biennial budget. These adjustments are not considered to represent cost growth.
Chem Demil-CMA (Chemical Demilitarization-Chemical Materials Agency) - Program costs decreased $1,668.2 million (-6.1%) from $27,422.6 million to $25,754.4 million, due primarily to updated disposal facility schedules that reflect the latest operational processing rates (-$1,454.8 million), reduced requirements for risk mitigation items that were overcome and for replacement equipment that was not required because of schedule successes (-$146.6 million), and the application of revised escalation indices (-$132.4 million). These decreases were partially offset by a revised estimate for the Non-Stockpile Chemical Materiel Project through fiscal 2022 (+$87.9 million).
JCA (Joint Cargo Aircraft) - Program costs decreased $2,077.3 million (-50.8%) from $4,087.8 million to $2,010.5 million, due primarily to a quantity decrease of 40 aircraft from 78 to 38 aircraft (-$1,370.0 million), and lower support costs associated with the quantity decrease (-$196.3 million). There were additional decreases due to a reduction in the estimate for maintenance training and depot standup costs (-$241.8 million), a reduction in estimated support costs based on a change to a firm-fixed price contract (-$155.1 million), and the application of revised escalation indices (-$89.6 million).
JTRS GMR (Joint Tactical Radio System Ground Mobile Radio) - Program costs decreased $1,405.7 million (-6.8%) from $20,536.4 million to $19,130.7 million, due primarily to reductions in the estimated recurring manufacturing costs based on actuals from engineering models (-$1,488.3 million) and the application of revised escalation indices (-$892.2 million). In addition, other support costs (-$240.8 million) and initial spares (-$99.2 million) were reduced proportionately based on recurring manufacturing reductions. These decreases were partially offset by increases associated with a stretch-out of the Army procurement buy profile (+$882.0 million), and Public Key Infrastructure (PKI), Waveform Interface Software (WIS), Soldier Radio Waveform (SRW) porting, and non-waveform software and hardware integration challenges (+$263.5 million). There were additional offset increases associated with a quantity increase of 427 Navy radios (+$74.1 million) and associated schedule, engineering, and estimating allocations* (+$21.7 million).
JTRS HMS (Joint Tactical Radio System Handheld, Manpack, and Small Form Fit) - Program costs increased $1,873.5 million (+55.6%) from $3,366.9 million to $5,240.4 million, due primarily to a quantity increase of 120,000 Army radios from 95,961 to 215,961 radios (+$3,506.6 million) and associated schedule and estimating allocations* (-$1,813.8 million). There were additional increases for initial spares and other support costs associated with the quantity increase and revised estimating assumptions (+$776.6 million). These increases were partially offset by a decrease in the estimated cost of radios based on actuals from engineering models/buildups (-$504.4 million), the application of revised escalation indices (-$91.6 million), and acceleration of the Army procurement buy profile (-$64.6 million).
* Note: Quantity changes are estimated based on the original SAR baseline cost-quantity relationship. Cost changes since the original baseline are separately categorized as schedule, engineering, or estimating "allocations." The total impact of a quantity change is the identified "quantity" change plus all associated "allocations."
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