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Defense Acquisitions: Business Case and Business Arrangements Key for Future Combat System's Success

GAO-06-478T Published: Mar 01, 2006. Publicly Released: Mar 01, 2006.
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Highlights

The Future Combat System (FCS) is a networked family of weapons and other systems in the forefront of efforts by the Army to become a lighter, more agile, and more capable combat force. When considering complementary programs, projected investment costs for FCS are estimated to be on the order of $200 billion. FCS's cost is of concern given that developing and producing new weapon systems is among the largest investments the government makes, and FCS adds significantly to that total. Over the last five years, the Department of Defense (DOD) doubled its planned investments in such systems from $700 billion in 2001 to $1.4 trillion in 2006. At the same time, research and development costs on new weapons continue to grow on the order of 30 to 40 percent. FCS will be competing for significant funds at a time when Federal fiscal imbalances are exerting great pressures on discretionary spending. In the absence of more money being available, FCS and other programs must be executable within projected resources. Today, I would like to discuss (1) the business case needed for FCS to be successful and (2) related business arrangements that support that case.

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Army procurementCost analysisDefense capabilitiesMilitary cost controlMilitary research and developmentProcurement planningProgram evaluationRisk assessmentWeapons systemsBusiness planningCost estimatesProgram costs