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Memorandum: Annual SAR Review 1 (May 1990)

handle is hein.congrec/cbo9660 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Robert D. Reischauer U.S. CONGRESS Director WASHINGTON, D.C. 20515 May 3, 1990 MEMORANDUM FOR THE RECORD FROM: Mick Miller$ Bill Myers Ray Hal< SUBJECT: Annual SAR Review The Selected Acquisition Reports (SARs) were submitted to the Congress on April 2, 1990 in support of the fiscal year 1991 budget request As part of our continued efforts to assist the Congressional st4 we have examined these reports in detaiL Our examination indicates that the Department of Defense (DoD) projects total program costs about 1 percent above levels of a year ago, but cost projections for individual systems vary widely. However, this result is not conclusive because, for the most part, the SAR estimates do not reflect the Administration's decisions that are necessary to lower the costs to meet the President's targeted funding levels. These deasion will be made during the upcoming program and budget review in support of next year's 1992/1993 budget submission. This memorandum presents the results of our analysis, highlighting aggregate cost changes and individual weapons system program changes. All costs are in current budget authority, unless otherwise noted. AGGREGATE COST CHANGES The total program costs provided in the SARs include research and development, procurement, military construction, and operation and maintenance appropriations. Total program costs reflect actual and projected costs of selected weapon systems from the development phase through the final buy. This year, the SARs cover 99 programs that have been reported previously and four additional reports being submitted for the first time, for a total of 103 systems. The systems' costs represent nearly 53 percent of the Administration's 1991 request for weapons procurement Excluding systems that were first included in the SAks in the past year. our analysis shows that DoD projections of total program costs have increased by about 1 percent ($7.9 billion) over the past year, unadjusted for inflation and quantity changes. The Defense Department reports projected cost changes in seven basic categories. The categories and their contribution to this year's cost changes are as* follows:

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