US military weapons cost overruns in the billions: report

[deadparrot]

WASHINGTON (AFP) - A survey of major US weapons development programs found an estimated 23 billion dollars in cost overruns and an average two years delay in reaching production, a government report said.

The Government Accountability Office, a congressional audit agency, said that of 23 major weapons program that it reviewed, 10 had already reported cost overruns of greater than 30 percent and production delays of at least a year.

Most of the other programs were still too early in the development cycle to be effectively analyzed, it said.

The report noted that the Pentagon plans to spend 1.3 trillion dollars on weapons development and procurement from 2005 to 2009, 800 million dollars of which still lies ahead.

http://news.yahoo.com/s/afp/usmilitaryweapons

[chicofaraby]

1. But the right wing will tell you

that welfare mothers are breaking the bank.

1.3 trillion dollars from 2005 to 2009 and the "defense" department couldn't stop 19 men armed with 99 cent boxcutters.

[HereSince1628]

2. Rummy's funding these on a reverse mortgage with China don't worry.

As soon as he dies, we give the country to China. Leaving something for the rest of us? Man, you youngsters need to get your own.

[spindrifter]

3. When have we ever

had weapons programs that delivered on time and on or under budget? Apparently the concept is ludicrous, despite the fct that we have fleets of people who check procurement and audit everything. Am I delusional or has it gotten worse under the current administration? Ha! Ha! Maybe it´s just that we haven´t had too much in the way of a lengthy, serious altercation since Vietnam.

[tabasco]

4. Overruns - - shmoverruns !

We spend half a trillion every year on "defense."

Overruns are the name of the game baby!

It's not about national defense - - -> it's about lining the pockets of the have-mores!

[niallmac]

5. One point three trillion dollars. Down the rat hole.

Military industrial complex. Eisenhower said it. JFK died in the midst of it. We sacrifice our earnings and our democracy under the brunt of it.
Think of what this nation could have done.

[rodeodance]

6. billions!!!! my gawd!

[haele]

7. Cost over-runs are normal.

The majority of the contractors find that they may have bid on one contract, but the contracts often change when one manager leaves and another one comes in with a different vision on how things are supposed to work. This usually happens once every three/four years; on a five or seven year contract with follow-ons and reviews, a government project manager can change two or three times within a contract.
Once a change that affects the direction of the research or production occurs, the majority of the work that was done prior to the change is wasted money. One can easily see three to ten million dollars wasted, and two or three years of work nullified because one of Rummie's friends plopped into a position of power decided he (or she) wanted a new, shiny toy to do something other than what the original vision for the project.
Often, one company loses a contract (through no fault of it's own) and another company that may or may not be as fully qualified as the first runs up costs to re-invent the wheel and change the process to fit the new company's way of doing things.

And not only that, it often seems as if there's money siphoned; dollars that were originally set aside for a five year contract disappears and the contractor needs to do more with less. Government Project managers often look to get free work from contractors ("can you make one little change here?; shouldn't cost you anything"), and smart contractors will put a halt to work and demand a contract modification to cover, because inevitably, it does cost either in time or dollars. Either doing "free work" or constant contract modifications will often trigger cost or time over-run flags at the GAO. Which, in turn, causes more cost and time over-runs when government agencies contract out companies to review these over-runs.

And that's part of the cost increase when more and more government functions are falling victim to privatization.

It's still better than doing contract work for states and counties...There's a lot more oversight.

Haele