Evaluation of MAVERICK Missile System Unit Cost Report Submitted Under Public Law 97-86, Section 917

MASAD-83-7: Published: Dec 14, 1982. Publicly Released: Dec 14, 1982.

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GAO was asked to examine unit cost reports submitted by the Secretary of Defense pursuant to P.L. 97-86. Accordingly, the most recent report on the Air Force AGM-65D imaging infrared Maverick missile program was reviewed.

GAO found that the unit cost report in question appeared complete from the standpoint of including all costs comprising the program cost estimate. However, the description of cost increases contained little detail and did not identify important program changes which resulted in the revised estimate. These data are available from selected acquisition reports and would enhance unit cost reporting. After the unit cost report was submitted to Congress, the Air Force Acquisition Review Council recommended changing the production schedule to the originally planned higher production rate after 3 years. The Air Force expects this higher production rate to reduce the total program cost by approximately $278 million.

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