Effect of the Nunn-McCurdy Amendment on Unit Cost Growth of Defense Acquisition Projects

摘要

DoD's major weapon system programs continue to take longer, cost more, and deliver fewer quantities and (less) capabilities than originally planned. Cost growth is a primary concern as DoD plans to spend approximately $935 billion dollars on acquisition between fiscal years 2009 and 2013 (but other non-discretionary) pressures are likely to reduce the acquisition dollars available. Congress tried to directly address the issue of unit cost growth with passage of the Nunn-McCurdy Amendment (NM). NM requires DoD to report when unit cost growth of any major defense acquisition program is 'known, expected, or anticipated' by a program manager to exceed certain cost growth thresholds.