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GAO-14-359R 1 (2014-04-10)

handle is hein.gao/gaobaahum0001 and id is 1 raw text is: G A O U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 April 10, 2014 Congressional Committees Status of Efforts to Initiate an Amphibious Combat Vehicle Program In 2011, following the expenditure of $3.7 billion and a 2007 breach of a statutory cost threshold,1 the Department of Defense (DOD) canceled the Marine Corps' Expeditionary Fighting Vehicle acquisition program due to concerns regarding its affordability. The Amphibious Combat Vehicle (ACV) is a potential, but not yet initiated, successor program to the Expeditionary Fighting Vehicle, intended to transport troops from ship to shore and use the sea as space to maneuver, while improving land performance in survivability, mobility, and lethality. The National Defense Authorization Act for Fiscal Year 2014 mandated us to review and report annually to the congressional defense committees on the ACV program until 2018.2 This is the first of the mandated GAO reports. It discusses (1) the current status of the ACV acquisition effort, and (2) the extent to which the ACV acquisition approach is consistent with acquisition best practices. To accomplish our objectives, we spoke with program officials, reviewed program documents, risks analyses and mitigation plans, cost and schedule benchmarks, and related program materials. We also reviewed past GAO work on acquisition best practices to use in assessing the ACV acquisition approach and develop a plan for future assessments. We conducted this performance audit from January 2014 to April 2014 in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. 1Section 2433 of title 10 of the United States Code, commonly referred to as Nunn-McCurdy, requires DOD to notify Congress whenever a major defense acquisition program's unit cost experiences cost growth that exceeds certain thresholds. This is commonly referred to as a Nunn-McCurdy breach. Significant breaches occur when the program acquisition unit cost or procurement unit cost increases by at least 15 percent over the current baseline estimate or at least 30 percent over the original estimate. For critical breaches, when these unit costs increase at least 25 percent over the current baseline estimate or at least 50 percent over the original, DOD is required to take additional steps, including conducting an in-depth review of the program. Programs with critical breaches must be terminated unless the Secretary of Defense certifies to certain facts related to the program and takes other actions, including restructuring the program. 10 U.S.C. § 2433a. 2pub. L. No. 113-66 § 251 (2013). GAO-14-359R Amphibious Combat Vehicle Page 1

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