oversight

Summary of Estimated Cost Data of 45 Selected Major Weapon Systems as of March 31, 1971

Published by the Government Accountability Office on 1971-10-14.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                          COMPTROLLER      GENERAL,     OF
                                         WASHIPIGTOM.    0.




         ~-163058


         Dear Mr. Chairman:

               Enclosed is the updated summary of estimated cost data, concerning
          the status of 45 selected major weapon systems'in??iuded    both in our
          report thereon dated March 18, 1971 (See Attachment I), and in the,
          March 31, 1971, SARs as requested by your letter    of September 20, 1971.
          This information   was obtained from the March 31, 1971, Selected Acquisi-
        1 9     Reports (SARs) as released by the Department of Defense.     We have         -
      ,- made no audit or verification    of the reported data.

              In addition   to the summary data, we have included a schedule of
         program cost data for each of the individual     systems included on the
         Selected Acquisition     Reporting System as of March 31, 1971 (See Attach-
         ment II).

              As you know, we do plan to review the SAR's issued as of June 30th
         in connection with the preparation    of our Major Acquisition Reporting
         System report on the status of these and other weapon systems early in
         the next calendar year.

                                                                      Sincerely   yours,




                                                                      Comptroller  General
                                                                      of the United States
         Attachments



         The Honorable William Proxmire, Chairman
         Subcommittee on Priorities  and Economy in Government
         Joint Economic Committee                    Y,- -Y
         Congress of the United States
.*'




                                    50 TH ANNIVERSARY         1921-   197
.




                                                                                    ATTACHMENT I
                                                                                    Page1

                         SUMMARYOF ESTIMATED COST DATA AS OF MARCH 31, 1971
                                         ($ IN MILLIONS)

    NUMBEROF             PLANNING           DEVELOPMENT                COST CHANGE                CURRENT
     SYSTEMS             ESTIMATE             ESTIMATE             QUANTITY     OTHER             ESTIMATE

    Ai3l-Y (10)          $13,088.3          $12,757.2              $(2,081.4)     $4,354.2        $15,030.00
    NAVY (24)                31,012.k            38,035*3            1,508.02      7,=9.78         46,673.lO
    AIR FORCE (11)           35,055.l            42,863.6           (4,871.8)      9,553*5         47,545.30
      TOTAL (45)         $mm.8                  $93,651            $(5,445.18)   $21,0X48

    TOTAL (45)
    as of 6/30/70        $78,615.5              $87,884.6          $ 3,476.6     $18,940-y    $110,301.7

    DIFFERENCE
    6/30/70 -            $       540.3          $ 5,771.5          $(8,92x78) $ 2,og6.98      $ (LO53.3)
    3/31/71
    NOTE:

         The amounts indicated      above for current estimate show a net decrease
         of $1,053.3 million      as compared to the similar total as of June 30,
         1970, reflected    in the GAO report (B-163058, dated March 18, 1971).
         This net decrease consists of an increase of $1,235.2 million          for the
         Army, a decrease of $4,876.7 million        for the Navy and an increase of
         $2,588.2 million     for the Air Force.

            The systems accounting        for     the major   changes are as follows:



            SAFEGUARD: Increase          - $229    million


                  Significant       increasgwere    primarily    due to revision    of previous
            estimates,     historic      inflation and stretchout     costs.   These increases
            were partially       offset by quantity     reductions.

            SAM-D:    Increase     - $508.3 million
                   This increase is primarily     due to revised cost estimates to update
            the constant dollar base from FY 1970 to FY 1971 and to reflect         the "best
            estimates"    of the amounts ultimately     to be paid, specifically incorporating
            anticipated    changes in future prices.
                                                                                ATTACHMENT I
                                                                                Page 2

ARMY (Cont'd)

       MDT-70: Increase        - $394.3 million
             This increase is primarily  due to revised cost estimates to update the
       constant dollar base from FY 1970 to FY 1971 and to reflect      the'best     estimates"
       of the amounts ultimately   to be paid, specifically incorporating      anticipated
       changes in future prices.

       TOW: Increase     - $47.8 million

             This increase is primarily  due to revised cost estimates to update the
       constant dollar base from FY 1970 to FY 1971 and to reflect      the "best estimates"
       of the amounts ultimately   to be paid, specifically incorporating    anticipated
       changes in future prices,

       ~-60~1~2:     Increase     - $31.1 million
            This increase is primarily    due to price escalation  and incorporation
       of SHILLELAGH equipment previously    reported  in SHILLELAGH SAP,.


NAVY

       SSN-688: Increase        - $1,467.8 million

            This increase        is primarily      due to an increase   in the number of units
       to be procured.

       DLGN-38:     Decrease     - $3,972.0     million

            This decrease        is primarily      due to a reduction   in the number of units
       to be procured.

       DD-963:     Decrease     - $1,461.4 million

            This decrease        is primarily      due to a reduction   in the number of units
       to be procured.
       LHA:   Decrease    - $467.8 million

            This decrease        is primarily      due to a reduction   in the number of units
       to be procured.
       MARK-48:     Decrease     - $1,196.7 million
            This decrease is primarily              due to a reduction   in the nuMber of torpedoes
       to be procured,  and refinement            of production   costs.
                                                                                     ATTACHMENTI
                                                                                     Page 3

AIR FORCE

    B-l:      Increase         - $1,016.3     million

          This increase is primarily due to escalation                        of procurement
    estimate from FY 1970 to Then Year Dollars.

    F-111:          Increase     - $295.2 million
          This increase is primarily  due to a program cost estimate
    reassessment reflecting   results of an independent cost estimate completed
    in January 1971 and other developments such as the Norden Settlement.

    Minuteman II:              Increase     - $297.9 million

             This     increase      is primarily        due to an upgrading     of the silo    program.

    tinutemsn         III:      Increase     - $432.6 million

           Program costs have increased                   primarily  due to an upgrading of the
    silo program.    This cost increase                   was offset by significant    cost decreases
    related to reductions    in missiles                  end related equipment,
.   .       1   -




                                                                       ATTACHMENT II
                                                                       Page 1


                    SCHEZMLEOF PROGRAMCOST DATA APPEARING ON MARCH 31, 1971 SARs
                                          ($ IN MILLIONS)
                     PLANNING       DEVELOPMENT        COST CHANGE
    SYSTEM           ESTIMATE        ESTIMATE      QUANTITY    OTHER            ESTIMATE


    CHEYENNE                                      $             $       76.2
    SAF-!ZGUARD~    $4 i's:*:        $4 ~~:*~         8;o.o         1,153.O
    DRAGON             '38212           '404:2       (232.7)            92.4
    SAM-D            4,g16.8          4,031.o      (b791.4)         1,682.2
    LANCE               586.7            652.9           6.9           105.8
    TOW                 410.4            727.3                         278.2        723.1
    M-60~~~2            162.1            205.6                         200.6        390.4
    MBT-70           2,126.5          2,100.g                          721.5     2,220.o
    GAMA GOAT            69.1            163.9                          17.1       175.5
    TACFIRE             123.6            160.5                          27.2       199.6
    NAVY

    SSN-688          1,658.0          5,747*5                                    5,747.5
    DLGN-38             769.2            769.2         338.32          410.78    1,518.3
    S-9              1,763.8          2,891.l                           35.6     2,926.7
    F-14             6,166.o          6,166.o      2,053.7             157.4     p;*;
    EA-6B               689.7            817.7        (50.7)           295.3
    I?-3c            1,2g4.2          1,294.2         971.1             94.8     2:360:1
    A-P              1,465.6          1,465.6                          625.4     1,893.g
    SW-23               157.1            170.5                         148.7        236.5
    VAST 247           241.1             312.0                         298.5        429.8
    PHOENIX            370.8             536.4         215.5           499.4     1,251.3
                       356.3             441.0                          53.0        280.3
    i::$ON~          4,560            4,568.7                          787.9     5,113.O
    SPARROWE         1,215.8          w69.3                             22.5        581.4
    SPARROWF            151.5           465.3                          527.9     1,260.g
    MARK-48             720.5            714.0                      1,8g8.4      2,560.5
                     1,380.3          1,380.3         (480.6)           60.3        960.0
    cvm68/6g            946.5         1,063.2                          170.6     1,233.8
    DE-1052          1,285.l          1,259.7                          156.1     1,415.8
    ;;;-;a:"         2,515.8          2,515.8                          426.8     2,g42.6
                        100.8            151.7                          26.2        177.9
    DLG CONV.           698.8            698.8                         286.3        985.1.
    AMTRAC              324.4            328.5        (126.9)             -9        202.5
    DD-963           1,784.4          2,581.2                          134.0     2,715.2
    AEGIS               388.0            427.6                          13.0        440.6
        I


    qFor these programs where the SAR's have shown only a
      development or a planning estimate, we have made both
      estimates the same in order to prevent distortion
      between the totals of these columns.
                                                                  ATTACHMENTII
                                                                  Page 2

                  PLANNING     DEVELOPMENT              COST CHANGE
, SYSTEM          ESTIMATE      ESTIMATE            QUANTITY      OTHER       ESTIMATE

 AIR FORCE
 B-l             $8,954.5      $11,218.8        $      (33.8)    $ ;:;4’,    $ll,=4.1
 F-15             6,039~                                                         7,3x1.6
 C-5A
 F -111
                  3,423.0
                  4,686.6
                                 X*~
                                 5:505:5
                                                      (7i6.3)     1,893:4        g;;*;
 FB-111           1~81.5         19781.5                                         1:283:8
 A-P              1,379.l        ;;g;                                            1,406.4
 AWACS            2,656.7
 MAVERICK            257.9         ‘383:4              (63.5)                    2,665.0
                                                                                    372.4
 SRAM               167.1               236.6          125.6        941.9        1,304.l
 MINUTEMAN11      3,014.l
 MINUTEMAN III    2,695.5                             (15%        1,549.3
                                                                     505.4       6,067.8
                                                                                 4,764.z


 NOTE:

 For comparison purposes, the above 45 programs on the SAR at March 31, 1971,
 were also on the SAR at June 30, 1970. Subsequent to June 30, 1970, two
 programs were completed and dropped from the SAR. Also, three programs were
 added to the SAX as of December 31, 1970, and March 31, 1971. These five
 programs a.re excluded from the schedule because comparable data is not
 available  for March 31, 1971 or June 30, 1970.