Final Quick-Reaction Report on the Review of the Cost- Effectiveness of Dual Sourcing Major Components of the Aegis Weapon System

摘要

During our Review of the Cost-Effectiveness of Dual Sourcing Major Components of the Aegis Weapon System, we reviewed contracts for major components of the Aegis Weapon System that were dual sourced as part of our overall objective, which was to evaluate the cost-effectiveness of the Navy's decision to dual source the components. The review identified procurement practices, which, if continued, could unnecessarily cost the Navy about $2.9 million in FY 1991 and about $20.4 million in the 6-year Defense planning period ending in FY 1997. Specifically, the Navy dual sourced acquisitions of the Fire Control System (FCS), a major component of the Aegis Weapon System (AWS), even though FCS dual source acquisitions had not been cost- effective. Although recent Navy cost-effectiveness studies concluded that dual sourcing the FCS was not cost-effective, the Navy continued to dual source the FCS. The Navy needs to take immediate action to cancel its planned dual source acquisitions of the FCS and to buy the FCS components from one source. Also, the Navy should cancel its dual source acquisition strategy included in the 6-year Defense program for the FCS.