By: Jacques Gansler, Jiahuan Lu, William Lucyshyn
The Department of Defense (DoD) continues to struggle to contain the costs of its weapons programs. In fact, there are indications that over the past few years, cost growth has actually increased. In 2003, the Government Accountability Office (GAO) found that the costs of major development acquisition programs (MDAPs) exceeded initial estimates by a combined total of $186 billion. By 2007, this figure increased to $302 billion, and by 2011, MDAPs exceeded their initial estimates by $402 billion (GAO, 2011). Moreover, the cost of DoD programs in absolute terms has also increased.