Updates to Selected Analyses from the Performance of the Defense Acquisition System Series: 2021 SARs Update , October 12, , 2023
Updates to Selected Analyses from the Performance of the Defense Acquisition System Series: 2021 SARs Update , October 12, , 2023
From the document: In 2013, 2014, 2015, and 2016 the Department of Defense (DoD) produced annual reports on the Performance of the Defense Acquisition System, along with partial updates with 2017, 2018, and 2019 data. 1 We encourage the interested reader to consult those volumes for background on defense acquisition, spending levels, and trends as well as a range of analyses on cost, performance, and schedule of Major Defense Acquisition Programs (MDAPs). Additional analyses look at contractor performance, the acquisition workforce, and source selection practices.
Here, we update selected sections from the Performance of the Defense Acquisition System series with recent data. To provide continuity, we use the methodologies established in the original reports, noting corrections and improvements in the relevant sections.
We provide updates on four topics:
• Nunn-McCurdy Breaches. We present the Department of Defense’s official list of Nunn-McCurdy breaches (Table 1) categorized by Component (Figure 2 and Table 2) and commodity type (Table 3). The counts of both critical and significant Nunn-McCurdy breaches have continued their downward trend since 2006, with the decreasing trend in critical breaches being statistically significant. This could be due to better program management, better baseline cost estimates, or a combination of these factors.
• Program Cost Performance (Development). We examine MDAP development (Research, Development, Test, and Evaluation [RDT&E]) cost growth on both a cumulative and biennial basis. In addition to showing the data on a program basis with all programs weighted equally, we also present the analyses with each program weighted by its size in dollars. Of note, by program, cumulative cost growth for RDT&E has been stable since 2010 (see Figure 3). Median RDT&E program cost growth in the last two years (biennial period 2019-2021) is in the negatives showing costs decreasing (see Figure 7). On a biennial (marginal) basis, there has been declining cost growth on programs.
• Program schedule growth of cycle time (program start to IOC). We analyzed the growth of cycle time of all active programs working towards or achieving IOC in a given year. Compared to data reported in 2016, actual cycle times at the median for combined MS B/C MDAPs has dropped from 7.6 years to 6.3 years, but growth from plans has increased, possibly due to more aggressive schedule plans in recent years.
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