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NSIAD-85-157 1 (1985-09-26)

handle is hein.gao/gaobabnuc0001 and id is 1 raw text is: J-11.D. , , I nI UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON. D.C. 20548 / NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIVISION September 26, 1985 B-210041 The Honorable Wayne Grant Acting Assistant Secretary of the Army (Financial Management) Dear Mr. Grant: Subject: Status of Efforts to Estimate and Budget for Army Weapon System Sustainment Costs (GAO/NSIAD-85-157) We have evaluated Army efforts to improve the accuracy and use of sustainment cost estimates in weapon system budgeting. Sustainment costs are one aspect of a weapon system's life cycle costs. They are the costs incurred to sustain a weapon system throughout its useful life. It is important that the Army plan and budget for the large resource outlays necessary to sustain the weapon systems. The Army does not have a good data base of historical weapon system sustainment ccsts to use as a basis in preparing budget estimates. Also, the program manager's cost estimates often differ substantially from the budget estimates. The Army has initiated programs which, we believe, have potential to improve the accuracy of and more directly link weapon system cost estimates and congressional budget submissions. IMPORTANCE OF SUSTAINMENT COST ESTIMATES Sustainment costs are the sum of all weapon system costs resulting from the operation, maintenance, and support over the life of the system. Although sustainment costs are difficult to estimate, they are an important planning tool for Army management. Better estimating procedures will allow the Army to more accurately identify the future budget impact of its current procurement decisions, will help the Congress in deciding on budget requests for new system support dollars, and will provide a better basis for deciding between various weapon systems with similar capabilities. I UJ9Z~ I I(393075) 128192

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