As long as the ffrdcs have access to the damir system, they will download their. Accelerating dod systems fielding while avoiding a new valley of. The sar total acquisition cost and quantity table contains. Ocx gets good news, right after nunnmccurdy breaking. A nunn mccurdy breach occurs when a program s unit cost exceeds certain thresholds. Trends in nunn mccurdy cost breaches for major defense acquisition programs gao id. Background, analysis, and issues for congress may 12, 2016 open pdf 2 mb the nunnmccurdy act 10 u.
As shown in table 1, a significant nunn mccurdy breach occurs when the program acquisition unit cost paucdefined as the total cost of development, procurement, and construction divided by the. Contractor motivastions and anticpating breaches volume 6 9780833087393. Jul 12, 2016 a nunn mccurdy breach notifies congress of major cost overruns on major defense acquisition programs. Dod and commercial advanced waveform developments and. Dod confirms f35 ioc delays, 50% nunnmccurdy breach. When that happens, dod must notify congress of the breach. Management perspectives pertaining to root cause analyses. Nunnmccurdy relief associated with changing programs of record to incorporate new.
Raytheon says gps control system ocx on track to hit. Six programs certified for oversight under nunnmccurdy law. Exceeding these thresholds is known as a nunnmccurdy breach. The purpose of the act is to help control cost growth in major defense systems by holding the appropriate pentagon officials and defense contractors publicly accountable and responsible for managing costs. A critical nunn mccurdy breach was declared in april 2011. If a program manager believes a program has experienced a breach, he or she is required to submit a unit cost report that includes. Dod releases new selected acquisition reports sars. Cape will conduct an ice for programs using the software acquisition pathway likely to exceed acat i or ii thresholds before the program enters the execution phase ep. This research includes such topics as program manager tenure, oversight of acquisition category ii programs, framing assumptions, and programs with multiple nunn mccurdy breaches. A nunnmccurdy unit cost breach occurs when a major defense acquisition program mdap experiences an increase of at least 15% in program acquisition. In 2007, dod certified the acwa program to congress under the four conditions specified by the act. Nunn mccurdy unit cost breaches to the program acquisition. Programs with multiple breaches did share some common characteristics. Download for offline reading, highlight, bookmark or take notes while you read trends in nunn mccurdy cost breaches for major defense acquisition programs.
Government accountability office investigators found 74 breaches in 47 major defense acquisition programs since 1997, the earliest date available in dod databases. According to, the original atircm objective was 3,400. The spacebased infrared system sbirs is a consolidated system intended to meet the united states infrared space surveillance needs through the first two to three decades of the 21st century. Programs that breach once are not more likely to breach a second time. Download it to your device today and never miss a beat. The nunn mccurdy process can be a useful mechanism for holding programs accountable for cost growth and restructuring them in the wake of cost growth. Mar 29, 2011 an even higher trigger point, known as a critical breach under nunn mccurdy, occurs when costs balloon past 25 percent of the current baseline or 50 percent of the original baseline. Gao11295r march 9, 2011 for nearly 30 years, the statutory provision, known as nunn mccurdy, has been an oversight tool for congress to hold the department of defense dod accountable for cost growth on major defense programs. Table 4 statutory program breach and change definitions. Whenever the program has a nunn mccurdy unit cost breach d.
Background, analysis, and issues for congress kindle edition by moshe schwartz. Dod certifies six programs under nunnmccurdy law breaches. Issues policies, procedures, and guidance governing the conduct of performance assessment and root cause analysis by military departments and defense agencies. Dod officials notified congress that the programs were in nunn mccurdy breach 90 days ago. Justia gao reports gao11295r trends in nunnmccurdy.
Leverages the capabilities of a variety of product support providers. Background, analysis, and issues for congress congressional research service 3 under current dod policy, current apbs cannot be revised just to avoid a nunn mccurdy breach. Programs continue despite cost overruns, gao says federal. One is an analysis of the nunn mccurdy breach that occurred in the joint precision approach and landing system increment 1a jpals inc. Requires that acquisition category i pms maintain current estimates of program acquisition unit cost pauc and average procurement unit cost apuc. Pricetag for pentagons major weapon systems grows by 10. Raytheon says gps control system ocx on track to hit revised milestones. Background, analysis, and issues for congress congressional research service 3 under current dod policy, current apbs cannot be revised just to avoid a nunnmccurdy breach. Small diameter bomb ii unit cost growth caused significant nunn mccurdy breach. Dod plans to propose a legislative amendment to reduce several statutory requirements added in 2009 for nunnmccurdy breaches.
The nunn mccurdy amendment or nunn mccurdy provision, introduced by senator sam nunn and congressman dave mccurdy in the united states 1982 defense authorization act and made permanent in 1983, is designed to curtail cost growth in american weapons procurement programs. The program executive office, assembled chemical weapons alternatives is considered an mdap. The small diameter bomb iis unit cost grew high enough to trigger a nunn mccurdy breach in the fall because, according to the air forces acquisition chief, the other military services and foreign partners have not bought as many as expected. In 1983, the nunn mccurdy act was passed into law by the u. Aaa driven changes may cause nunn mccurdy breaches and are not necessarily the result of poor management. H1 upgrades sar submitted to congress on july 6, 2009 for a significant nunnmccurdy breach however, in september 2009 at the request of the hasc and sasc, dod agreed to submit pb10 limited sars. Cape may, in its discretion, delegate the authority for the conduct of the cost estimate to the sca. However, the navy is reporting the breach for transparency purposes. The criteria for reporting nunn mccurdy breaches have been.
The law requires department of defense dod acquisition programs and other largescale federal gov. Arena, john birkler, irv blickstein, charles nemfakos, abby doll, jeffrey a drezner, gordon t lee, megan mckernan, brian mcinnis, carter c. Decisions made during program execution as a root cause of. Programs that breach more than once had technical issues that were not resolved by corrective actions taken at the first. Initial dod position was to submit sars only for programs with nunnmccurdy breaches due to limit on obligations.
Amendment to title 10 introduced by senator sam nunn and congressman dave mccurdy in the national defense authorization act ndaa for fiscal year fy 1982. None of the programs on the nunn mccurdy list are surprises to the department or to congress, the official said. Major weapon system acquisition senate armed services. Two billion dollar ddg cost growth explained usni news. As a mdap, peo acwa has experienced three nunn mccurdy breaches to date. Prepares root cause analyses for mdaps with nunn mccurdy breach status or when requested by senior dod officials. This thursday insider daily digest has news on the small diameter bomb ii program suffering a nunn mccurdy cost breach, the air forces nc3 modernization efforts and more the air forces small diameter bomb ii program has suffered a nunn mccurdy cost breach. A program whose cost growth exceeds the statutory thresholds is said to have a nunn mccurdy breach. For example, the nunn mccurdy act threatens the termination of programs upon breach of specified cost overrun thresholds. Management perspectives pertaining to root cause analyses of. Dod certifies 6 programs under nunnmccurdy law breaches u. Dod notified congress that the programs were in nunn mccurdy breach 90 days ago.
Mccurdy breaches in four of six major defense acquisition programs that had. No obvious cost growth trends suggest that a program might breach more than once. Identify the reporting vehicles for statutory unit cost reporting. The purpose of the statute was to provide congress greater visibility into major defense programs cost growth and to encourage dod to manage and control cost growth. None of the programs on the nunn mccurdy list are surprises to department officials or to congress, the official said. Although 25 of these programs experienced unitcostgrowth of over 50% relative to their original baseline, the dod did not report programs as having incurred a nunn mccurdy breach because the national defense authorization act permitted the original baseline estimate to be revised to the current baseline estimate as.
Navy for inspection and acceptance trials this month. Just 10 days ago the pentagon declared the program had incurred a nunn mccurdy breach. The nunn mccurdy provision set forth in the national defense authorization act for fy 1982 is designed to address unwarranted cost escalation in defense acquisition programs by requiring formal notification to congress of cost growth above designated thresholds. Dod decision breathes new life into critical ocx satellite program. Programs in breach may be terminated if the program is not certified by the secretary of defense and restructured. The apache block 3 program is on the list because the department added new aircraft to a program that was refurbishing existing aircraft. The nunnmccurdy amendment or nunnmccurdy provision, introduced by senator sam nunn and congressman dave mccurdy in the united states 1982 defense authorization act and made permanent in 1983, is designed to curtail cost growth in american weapons procurement programs. We were asked the following three research questions. Are programs that have a nunn mccurdy breach more likely to breach again. Download it once and read it on your kindle device, pc, phones or tablets. One is an analysis of the nunn mccurdy breach that occurred in the joint precision approach and landing system increment1a jpals inc. The program has already experienced one nunn mccurdy act breach in 2010. The criteria for reporting nunn mccurdy breaches have been modified several times since the 1982 act.
Nunn mccurdy thresholds there are two categories of breaches. Unit cost reporting is required to be reported quarterly in the daes. Factors leading to the breach include inadequate systems engineering at program inception, and the. A program that experiences cost growth exceeding any of the established thresholds is said to have a nunn mccurdy breach. We previously discussed nunnmccurdy limits in this article. As shown in table 1, a significant nunnmccurdy breach occurs when the program acquisition unit cost or the procurement unit cost increases 15% or more over the current baseline estimate or 30% or. Military and naval science defense programs military procurement laws, regulations and rules management. In addition to reports on major defense acquisition programs, rand, at the request of the sponsor, has researched topics related to the management of defense acquisition. Dod certifies 6 programs under nunnmccurdy law breaches. Accelerating dod systems fielding while avoiding a new. Trends in nunn mccurdy cost breaches for major defense acquisition programs dear mr. At the discretion of dcape, the ice may be updated during the ep. Efficacy of us legislation in military acquisition programmes.
Trends in nunnmccurdy cost breaches for major defense. However, ritschels 2012 analysis of nunn mccurdy breaches reveals that. Ppt apb, sar, and nunnmccurdy status powerpoint presentation free to view id. This new process has merit, as our analysis shows that nearly 40 percent of nunnmccurdy breaches occurred after a production decision had been madewhen a program has fewer options for restructuring. The purpose of the act is to help control cost growth in major defense systems by holding the appropriate pentagon officials and defense contractors. Mccurdy breach the selected sample includes 27 of the 41 programs since 1997 that had a nunn. A program whose cost growth exceeds the statutory thresholds is said to have a nunnmccurdy breach.
Nunnmccurdy breach breaking defense defense industry. Nunnmccurdy thresholds there are two categories of breaches. The program then suffered a nunn mccurdy breach in 2002, when costs rose steeply on the first ship of the class, and there were some questions as to whether the program. Example programs include the warfighter information network tactical wint, advanced anti. Use features like bookmarks, note taking and highlighting while reading the nunnmccurdy act. In 2010, seven dod programs breached the nunn mccurdy prohibition, but under the law, all that has to happen is for the pentagon to explain why a given program is important.
Nunn mccurdy unit cost breaches to the program acquisition unit cost pauc or average procurement unit cost apuc of 25% or more compared to the current apb or 50% or more compared to the original apb significant breach require notification to congress and submission of a sar to congress explaining the causes of the breach. For nearly 30 years, the statutory provision, known as nunn mccurdy, has been an oversight tool for congress to hold the department of defense dod accountable for cost growth on major defense programs. The new standard prevents dod from simply rebaselining a program to avoid a breach. Mar 09, 2011 for nearly 30 years, the statutory provision, known as nunnmccurdy, has been an oversight tool for congress to hold the department of defense dod accountable for cost growth on major defense programs. Marines wont cut planned f35 buy totals for now, but. Other significant aviation systems that have had a nunn mccurdy breach in the. A nunn mccurdy breach occurs when a programs unit cost exceeds certain thresholds. Nunnmccurdy terms may complicate gps ocx money fix inside gnss. The nunnmccurdy provision applies to weapons programs and.
A nunnmccurdy breach occurs when a programs unit cost exceeds certain thresholds. The sasc, in its markup for the 2017 defense policy bill, cited a cost growth of 186 percent for program acquisition unit cost over the original baseline estimate. Trends in nunn mccurdy cost breaches for major defense acquisition programs ebook written by michael j. The pentagon declared a nunn mccurdy breach for the operational control system ocx program this june after costs increased by more than 25 percent over projections. In addition, air force officials steering the multiservice program within days officially will notify congress it suffered a unit cost breach of more than 50 percent triggering a socalled nunn mccurdy recertification to congress, militaryprocurement brass told. Root cause analyses of nunnmccurdy breaches, volume 1. Correspondence issued by the government accountability office with an abstract that begins for nearly 30 years, the statutory provision, known as nunn mccurdy, has been an oversight tool for congress to hold the department of defense dod accountable for cost growth on major defense programs. Nunn mccurdy breaches in major defense acquisition programs. Correspondence issued by the government accountability office with an abstract that begins for nearly 30 years, the statutory provision, known as nunnmccurdy, has been an oversight tool for congress to hold the department of defense dod accountable for cost growth on major defense programs. The integrated defensive electronic countermeasures idecm blocks 23 program suffered a critical nunn mccurdy breach, with an increase of almost 2.
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