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Missile Defense: Cost Increases Call for Analysis of How Many New Patriot Missiles to Buy

NSIAD-00-153 Published: Jun 29, 2000. Publicly Released: Jul 26, 2000.
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Highlights

Pursuant to a congressional request, GAO provided information on the cost increases in the Patriot Advanced Capability-3 program, focusing on: (1) how much costs have increased and the reasons for those increases; (2) whether additional cost increases are expected; (3) what is being done to control costs; and (4) whether the Army's requirement will be met by planned missile procurements.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To help determine how many upgraded Patriot missiles to buy, the Secretary of Defense should perform detailed analyses and report to Congress on the expected costs, benefits, and implications of the currently planned and alternative procurement levels. These analyses should, at a minimum, examine expected impacts of: (1) buying more missiles; (2) buying fewer missiles to address increased costs; or (3) buying the same number of missiles but extending the procurement period or increasing funding to address increased costs. They should also examine the potential degradation in defense capability resulting from any gaps between alternative procurement levels and the Army's stated requirements.
Closed – Implemented
DOD officials told GAO that several missile utility assessments had addressed the quantity of PAC-3 missiles, the timing of the procurement, and the associated risks.

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Topics

Air defense systemsCost overrunsDefense capabilitiesDefense procurementMilitary cost controlMissilesProcurement planningWeapons research and developmentU.S. ArmyProcurement