Department of Defense releases Selected Acquisition Reports; Department of Defense news release

Defense AT&L, July-August, 2008

FAB-T (Family of Advanced Beyond Line-of-Sight Terminals)--Program costs increased $454.8 million ( 14.4 percent) from $3,167.4 million to $3,622.2 million, due primarily to a revised cost estimate resulting from analysis by the Office of the Secretary of Defense Cost Analysis Improvement Group ( $348.8 million). Costs also increased due to a net quantity increase of 6 terminals from 216 to 222 terminals ( $44.7 million), adjustments in real and predicated escalation ( $26.6 million), an increase in initial spares ( $25.5 million), and a net stretch-out of the procurement buy profile ( $9.2 million).

NAVSTAR GPS (Global Positioning System) User Equipment--Program costs increased $718.4 million ( 52.2 percent) from $1,375.3 million to $2,093.7 million due to an increase to allow for continuation of a multi-vendor strategy through delivery of prototype cards and to facilitate transitioning the prototype program into a full development/production program focusing on integration of military code (M-Code)-capable receivers into Service-nominated lead platforms.

SBIRS (Space Based Infrared Systems) High--Program costs increased $1,675.0 million ( 17.0 percent) from $9,879.5 million to $11,554.5 million, due primarily to a quantity increase of one Geosynchronous Earth Orbit (GEO) satellite ( $821.6 million) from three to four GEO satellites and to fully fund the latest Office of the Secretary of Defense Cost Analysis Improvement Group cost estimate ( $866.1 million), which includes increased costs for flight software system schedule slips and follow-on production efforts for host support, launch support, and other government costs.

DoD

Chem Demil-CMA (Chemical Demilitarization-Chemical Materials Agency)--Program costs decreased $1,220.5 million (-4.3 percent) from $28,643.1 million to $27,422.6 million, due primarily to adjustments to disposal facility schedules to reflect the latest operational processing rates and reduced closure durations for sites where secondary wastes can be shipped offsite or destroyed during operations (-$1,138.3 million), and the application of revised escalation indices (-$127.9 million).

F-35 (Joint Strike Fighter)--Program costs decreased by $981.3 million (-0.3 percent) from $299,824.1 million to $298,842.8 million, due primarily to the application of revised escalation indices (-$1,955.8 million), lower material estimates because of prime contractor's material agreements (-$1,650.6 million), and incorporation of revised prime/subcontractor labor rates (-$879.4 million). There was an additional reduction for a revised estimate of support costs (-$7,445.0 million). These decreases were partially offset by higher estimates for elements of procurement nonrecurring costs ( $4,369.0 million), an adjustment to reflect manufacturing actuals for the system demonstration and development flight test articles ( $3,849.9 million), and a revised propulsion estimate to include additional hardware and increased lift fan cost ( $2,769.1 million). Overall, it should be noted that the Nunn-McCurdy unit costs are stable relative to the current and original baseline estimates.