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Defense Acquisitions: Progress Made in Fielding Missile Defense, but Program Is Short of Meeting Goals

GAO-08-448 Published: Mar 14, 2008. Publicly Released: Mar 14, 2008.
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Highlights

By law, GAO annually assesses the Missile Defense Agency's (MDA) progress in developing and fielding a Ballistic Missile Defense System (BMDS). Funded at $8 billion to nearly $10 billion per year, it is the largest research and development program in the Department of Defense (DOD). The program has been managed in 2-year increments, known as blocks. Block 2006, the second BMDS block, was completed in December 2007. GAO assessed MDA's progress in (1) meeting Block 2006 goals for fielding assets, completing work within estimated cost, conducting tests, and demonstrating the performance of the overall system in the field, and (2) making managerial improvements to transparency, accountability, and oversight. In conducting the assessment, GAO reviewed the assets fielded; contractor cost, schedule, and performance; and tests completed during 2007. GAO also reviewed pertinent sections of the U.S. Code, acquisition policy, and the charter of a new missile defense board.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To build on efforts to improve the transparency, accountability, and oversight of the missile defense program, the Secretary of Defense should direct MDA to develop a full cost for each block and request an independent verification of that cost.
Closed – Not Implemented
The Missile Defense Agency changed its block strategy in 2008. Subsequently, all blocks were terminated. Thus, costs cannot be established.
Department of Defense To build on efforts to improve the transparency, accountability, and oversight of the missile defense program, the Secretary of Defense should direct MDA to clarify the criteria that it will use for reporting unit cost variances to Congress.
Closed – Implemented
In its June 2010 Ballistic Missile Defense System (BMDS) Accountability Report, the Missile Defense Agency implemented this recommendation by clarifying the criteria that it will use for reporting unit cost variances for BMDS assets.
Department of Defense To build on efforts to improve the transparency, accountability, and oversight of the missile defense program, the Secretary of Defense should direct MDA to examine a contractor's planning efforts when 20 percent or more of a contract's work is proposed as level of effort.
Closed – Implemented
The Missile Defense Agency has been working to minimize the amount of work categorized as level of effort. The agency plans to refine its earned value management guidance to include additional criteria for level of effort work.
Department of Defense To build on efforts to improve the transparency, accountability, and oversight of the missile defense program, the Secretary of Defense should direct MDA to investigate ways of developing a baseline or some other standard against which the progress of technology programs may be assessed.
Closed – Not Implemented
The Missile Defense Agency (MDA) is in the process of transitioning to a new acquisition strategy. MDA has developed cost estimates for some of its technology programs, but has not baselined any of them at this time. MDA currently uses knowledge points to address technical maturity and affordability issues and does not plan to establish baselines for any of them.
Department of Defense To build on efforts to improve the transparency, accountability, and oversight of the missile defense program, the Secretary of Defense should direct MDA and the Director of Operational Test and Evaluation to agree on criteria and incorporate corresponding scope into developmental tests that will allow a determination of whether a block of BMDS capability is suitable and effective for fielding.
Closed – Not Implemented
MDA is currently coordinating with DOT&E on a revised test plan that may include operational assessments. The agency plans to field BMDS elements in coordination with the war fighters who participate in ground and flight tests to support capability activation. Although MDA will continue working closely with DOT&E and the operational test agencies in the Services to strengthen the testing of Ballistic Missile Defense System suitability and effectiveness, MDA does not currently consult with DOT&E to make fielding decisions.

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Topics

AccountabilityBallistic missile defenseBallistic missilesCost analysisDefense capabilitiesDefense procurementFederal fundsFunds managementOperational testingPerformance appraisalPerformance managementPerformance measuresProgram managementResearch and development costsSchedule slippagesSystems analysisSystems evaluationSystems testingWeapons research and developmentWeapons systemsCost estimatesProgram costsProgram goals or objectivesProgram implementationTransparency