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April 16, 2018 By AMK

Pricetag for Pentagon’s major weapon systems grows by 10 percent

The estimated cost for procuring the Pentagon’s major weapon systems increased 10 percent in 2017, growing from $1.74 trillion to $1.92 trillion in projected costs.

Those numbers were released as part of the department’s annual Selected Acquisition Reports.  The SARs cover the 83 major defense acquisition programs that make up the largest programs managed by the former undersecretary of defense for acquisitions, technology and logistics.

However, that increase is not necessarily the result of problems within the acquisition programs, with the report starting that the cost increase is due in part to adding a new major program — the CH-47F Modernized Cargo Helicopter (CH-47F Block II) — to the SAR list, as well as increased quantities on various programs.

Only two programs had Nunn-McCurdy breaches, the government standard in judging unit cost increases, both from the Navy.

Keep reading this article at: https://www.federaltimes.com/pentagon/2018/04/03/pricetag-for-pentagons-major-weapon-systems-grows-by-10-percent/

Filed Under: Government Contracting News Tagged With: AT&L, cost, cost increase, DoD, SAR, weapon systems

January 15, 2014 By AMK

GSA’s Networx contracts not as effective as they might have been

Although GSA officials say the agency’s Networx contracting vehicles have put significant dents in the federal government’s telecommunications bills, a GAO study says the road to those savings wasn’t nearly as smooth as it could have been.

The Government Accountability Office said complex acquisition processes and weaknesses in project planning contributed to delays transitioning to Networx from the GSA’s old FTS2001 contracts, resulting in cost increases and missed savings for federal users.

According to the GAO study, under Networx, federal agencies tended to transition easier items first to demonstrate progress, before they turned to work on items such as data networks and international services that needed longer lead times. As a result of the delays, it said, GSA’s estimated cost to complete the transition increased by $66.4 million, 44 percent over the baseline estimate.

Keep reading this article at: http://fcw.com/articles/2014/01/07/gao-networx-study.aspx

Filed Under: Government Contracting News Tagged With: acquisition strategy, cost increase, cost savings, duplication of effort, GAO, GSA, Networx, telecommunications

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