Cost overruns in Department of Defense (DoD) acquisition programs are a detriment to overall DoD mission accomplishment because funding that must be realigned to support program cost overruns necessarily has to be taken from other programs.
Numerous studies have shown that once a program is 20% complete the cost performance index rarely, if ever, improves and in most cases only worsens. In addition, GAO has reported that 40% of Nunn-McCurdy Breaches occurred after a production decision has been made. (more…)