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Since 1990, the DoD mgmt. of major weapon system acquisitions has been designated a high-risk area. DoD has taken some action to improve acquisition outcomes, but its weapons programs continue to take longer, cost more, and deliver fewer capabilities than originally planned. Over the next 5 years, DoD plans to invest about $900 billion to develop and procure weapons systems -- the highest level of investment in two decades. This testimony describes DoD¿s current weapons system investment portfolio, the problems that contribute to cost and schedule increases, and the potential impacts of recent legislative initiatives and DoD actions aimed at improving outcomes. Charts and tables.
A broad consensus exists that weapon system problems are serious, but efforts at reform have had limited impact. Last year, it was reported that DoD's portfolio of weapon programs experienced cost growth of $295 billion from first estimates, were delayed by an average of 21 months, and delivered fewer quantities and capabilities to the war-fighter than originally planned. This testimony describes the systemic problems that contribute to the cost, schedule, and performance problems in weapon system programs, recent actions that DoD has taken to address these problems, proposed reform legislation that has recently been introduced, and additional steps needed to improve future performance of acquisition programs. Charts and tables.
In 2006, the cumulative cost growth in DoD¿s portfolio of 96 major defense acquisition programs was $296 billion and the average delay in delivering promised capabilities to the warfighter was 22 months. These are very poor outcomes. The auditor has used metrics to review the mgmt. and health of these programs from within the framework of best practices. This testimony discusses: (1) ¿knowledge metrics,¿ used to determine how well programs manage tech., design, and manufacturing risks; (2) outcome metrics -- concerning cost, schedule, and capability -- that serve as ¿health indicators¿ of how well programs are being executed in terms of predicted outcomes; and (3) the prerequisites that must be met in order for a program¿s plans and goals to be realistic.
Includes observations on the performance of DoD's 2010 portfolio of 98 major defense acquisition programs; data on selected factors that can affect program outcomes; an assessment of the knowledge attained by key junctures in the acquisition process for a subset of 40 programs; and observations on the implementation of acquisition reforms. To conduct this review, the auditor analyzed cost, schedule, and quantity data and collected data from program offices on performance requirements and software development; technology, design, and manufacturing knowledge; and the implementation of DoD's acquisition policy and acquisition reforms. He also compiled assessments of 71 weapon programs. Charts and tables. This is a print on demand report.