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GAO: Weapon systems face major cost growth

WASHINGTON, April 2 (UPI) -- The U.S. Defense Department plans to spend $1.5 trillion on new weapons and computer systems and most will face serious cost overruns in the future.

That is double what the DOD planned to spend just five years ago.

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Most of the systems proceed into development and production with many technical problems and key design questions unanswered, according to the Government Accountability Office.

In 62 systems assessed by GAO, just 16 percent of them began their development with mature technologies. Those that began without mature technologies in hand experienced 32.3 percent cost increases, compared to those with mature technologies that saw on average a 2.6 percent price increase. Just 27 percent of the 62 systems assessed had a stable, approved design before going into production.

"It is not unusual to see cost increases that add up to tens or hundreds of millions of dollars, schedule delays that add up to years, and large and expensive programs being scrapped after years of failing to achieve promised capabilities," states the GAO report.

The Pentagon has procedures in place that are supposed to guard against cost overruns and immature technologies, but those processes or often skipped or given short shrift by acquisition personnel, GAO asserted.

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The GAO reviewed top companies to determine how they develop and bring new products to market, and recommends approaches perfected by the private sector to improve DOD's acquisition cycle. A chief recommendation is widening the acquisition circle to include all the military services and intended customers -- combatant commanders -- in development and procurement decisions.

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