Missile Defense: Actions Needed to Improve Planning and Cost Estimates for Long-Term Support of Ballistic Missile Defense
GAO-08-1068
Published: Sep 25, 2008. Publicly Released: Sep 25, 2008.
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Highlights
The Department of Defense (DOD) has spent a total of over $115 billion since the mid-1980s to develop a Ballistic Missile Defense System (BMDS) comprised of land, air, and sea-based elements--such as missiles and radars--working together as an integrated system. Since the cost to operate and support a weapon system usually accounts for most of a system's lifetime costs, the resources needed to fund BMDS could be significant as DOD fields an increasing number of BMDS elements. In 2005, DOD began planning to transition responsibility for supporting BMDS elements from the Missile Defense Agency (MDA) to the services. GAO was asked to assess the extent to which DOD has (1) planned to support BMDS elements over the long-term, and (2) identified long-term operation and support costs. To do so, GAO analyzed 7 BMDS elements that will be fielded by 2015, compared DOD's plans and cost estimates to DOD and GAO key principles, and assessed the extent to which MDA and the services have agreed on responsibilities for supporting and funding BMDS elements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To improve planning to support BMDS elements, including planning for the transition of support responsibilities from MDA to the services, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics, establish a standard process for long-term support planning that adheres to key principles for life-cycle management, including establishing timelines for planning that must be completed before each element is fielded, such as naming a lead service, involving services in support and transition planning, and deciding when support responsibilities will be transitioned to the services. |
Closed – Implemented
The Missile Defense Agency (MDA)and the Army completed an agreement for the Terminal High Altitude Area Defense element that specifies what actions will be completed before the element transfers from MDA to the Army. We claimed an accomplishment for this action in 2011. Regarding the broader application of this recommendation beyond the Terminal High Altitude Area Defense element, we learned (during our review of ballistic missile defense system training requirements (code 351509)) that MDA and the services had prepared other agreements in 2009, and that these agreements - covering other ballistic missile defense system elements -- were in the process of being updated. DOD did not indicate to us when these would be completed. However, we believe there is sufficient momentum to take such actions, and therefore we are closing this recommendation as implemented.
|
| Department of Defense | To improve planning to support BMDS elements, including planning for the transition of support responsibilities from MDA to the services, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics, establish a standard process for long-term support planning that adheres to key principles for life-cycle management, including requiring active lead service participation in developing long-term support plans and designating what support planning should be completed before elements are fielded. |
Closed – Implemented
Missile Defense Agency (MDA) issued guidance stating that MDA and the lead service shall develop sustainment plans jointly and that programs managers will incorporate total life cycle system management.
|
| Department of Defense | To improve planning to support BMDS elements, including planning for the transition of support responsibilities from MDA to the services, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics, establish a standard process for long-term support planning that adheres to key principles for life-cycle management, including specifying which organization is responsible for life-cycle management and identifying steps for oversight to identify who is accountable for ensuring these actions are accomplished. |
Closed – Implemented
The Missile Defense Agency (MDA)and the Army completed an agreement for the Terminal High Altitude Area Defense element that documents life cycle management responsibilities as part of a standardized process for long-term support planning. We claimed an accomplishment for this action in 2011. Regarding the broader application of this recommendation beyond the Terminal High Altitude Area Defense element, we learned (during our review of ballistic missile defense system training requirements (code 351509)) that MDA and the services had prepared other agreements in 2009, and that these agreements - covering other ballistic missile defense system elements -- were in the process of being updated. DOD did not indicate to us when these would be completed. However, we believe there is sufficient momentum to take such actions, and therefore we are closing this recommendation as implemented.
|
| Department of Defense | To increase transparency and improve fiscal stewardship of DOD resources for BMDS, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics, to establish a requirement to estimate BMDS operation and support costs including detailing when credible estimates are to be developed, updated, and reviewed; specifying criteria for prioritizing, allocating, and distributing funds; and clearly identifying who is responsible for oversight of this process. |
Closed – Implemented
The Missile Defense Agency and the Army completed an agreement that both organizations would develop joint operations and support cost estimates consistent with GAO's Best Practices Guide for Cost Estimating. Also DOD has issued guidance establishing the MIssile Defense Executive Board and the BMDS Life Cycle Management Process. The DOD Comptroller will administer all BMDS defense-wide funds and must concur on all element-specific agreements.
|
| Department of Defense | To increase transparency and improve fiscal stewardship of DOD resources for BMDS, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics, to establish a requirement to estimate BMDS operation and support costs including requiring periodic independent validation of operation and support costs for each BMDS element. |
Closed – Implemented
The Missile Defense Agency and the Army completed an agreement for developing joint operations and support cost estimates that includes presenting the estimate to management for approval and requesting the Director of Cost Assessment and Program Evaluation to conduct an independent cost estimate.
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| Department of Defense | To increase transparency and improve fiscal stewardship of DOD resources for BMDS, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics, to establish a requirement to estimate BMDS operation and support costs including using the independently validated estimates to support preparation of complete and credible budget submissions and DOD's spending plan and to assess the long-term affordability of the integrated system and individual elements for informing key trade-off decisions. |
Closed – Not Implemented
During our review of ballistic missile defense training requirements, we learned that MDA and the services are still working to develop and approve operations and support cost estimates for ballstic missile defense system elements. However, DOD has not provided suffcient documentation indicating that either the Missile Defense Agency or the services had completed ballistic missile defense system operation and support cost estimates using independently validated estimates and credible budget submissions to assess the long-term affordability of the integrated system and individual elements. Therefore we are closing this recommendation as not implemented.
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Topics
Ballistic missile defenseBallistic missilesCost analysisDefense budgetsDefense capabilitiesDefense contingency planningDefense cost controlDefense procurementFuture budget projectionsMissilesPolicy evaluationProcurement planningProgram managementStrategic planningSystems conversionsSystems development life cycleSystems integrationWeapons systemsCost estimatesProgram implementation