DOD: Projected WIN-T cost soars by $2.2B

Selected Acquisition Reports

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The Warfighter Information Network-Tactical, the communications network needed to enable the Future Combat System (FCS), suffered cost increases of almost $2.2 billion in the last quarter of 2006, placing WIN-T in breach of the laws related to acquisition program growth.

Eight programs are in breach of their cost commitments as defined by the Nunn-McCurdy provision, the Defense Department announced April 9. DOD released its quarterly Selected Acquisition Reports on 89 programs to show changes between September and December 2006. The reports, issued to Congress, track cost, schedule and performance standards.

The Nunn-McCurdy provision, which relates to the reports, was part of the Defense Authorization Act of 1982. Programs are deemed to have breached the law when they have incurred cost increases of at least 15 percent or schedule delays of more than six months.

The total cost for WIN-T will now be $16.4 billion, an increase of 15.5 percent of the total cost, according to the report. The decision to procure WIN-T for the Total Army, which includes the Reserves and the National Guard, caused most of the cost increase, the report states. By removing some Joint Tactical Radio System equipment and reducing post-deployment support funds, WIN-T cut about $965 million from its price.

The total cost of FCS was revised downward, from $164.6 billion to $161.9 billion. The Army saved $17.6 billion by eliminating four of 18 planned FCS systems, but these savings were offset heavily by increases in the price of the FCS development and a delayed procurement schedule.

Costs for the JTRS Waveform program increased $317.5 million, or 17.8 percent, to just more than $2.1 billion in that period, according to the report.

The Defense Integrated Military Human Resources Program was added to the reports for the first time, with a total cost estimate of $805 million.

Total commitments for major defense acquisitions programs rose more than $56 billion between September and December 2006, to a total of $1.684 trillion. Lengthened development and procurement schedules caused the highest increase, $22.6 billion. Higher program cost estimates, increased support requirements and engineering changes also raised price tags for systems.

In addition to WIN-T, the programs in breach were the:
  • C-130 Avionics Modernization Program.
  • Expeditionary Fighting Vehicle.
  • Force XXI Battle Command Brigade and Below Program.
  • Guided Multiple Launch Rocket System.
  • Joint Air-to-Surface Standoff Missile.
  • Joint Primary Aircraft Training System.
  • Land Warrior program.
All of the breach programs must be re-certified by Congress by June 5, except the Land Warrior program, which was terminated in the fiscal 2008 budget, released in February. Despite its termination, Land Warrior is being deployed to Iraq with the 4th Battalion, 9th Regiment out of Fort Lewis, Wash.


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