**GAO-08-619**                      Published: Jul 02, 2008. Publicly Released: Jul 02, 2008.                  

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## Highlights

The Department of Defense (DOD) expects the cost to develop and procure the major weapon systems in its current portfolio to total $1.6 trillion. With increased competition for funding within DOD and across the federal government, effectively managing these acquisitions is critical. Yet DOD programs too often experience poor outcomes--like increased costs and delayed fielding of needed capabilities to the warfighter. In 2006, this Committee mandated that GAO report on DOD's processes for identifying needs and allocating resources for its weapon system programs. In 2007, GAO reported that DOD consistently commits to more programs than it can support. This follow-on report assesses DOD's funding approach, identifies key factors that influence the effectiveness of this approach, and identifies practices that could help improve DOD's approach. To conduct its work, GAO assessed 20 major weapon programs in DOD's current portfolio--5 in detail--and reviewed relevant DOD policy and guidance, prior GAO work, and other relevant literature. GAO also reviewed the practices of selected successful companies.

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## Topics

National Defense

Cost analysisCost overrunsDefense budgetsDefense capabilitiesDefense cost controlDefense industryDefense operationsDefense procurementFederal fundsFinancial managementFunds managementFuture budget projectionsMilitary research and developmentMilitary technologyPolicy evaluationProcurement planningProcurement policyProgram managementReporting requirementsResearch and development costsStrategic planningSystems analysisSystems integrationSystems managementTechnologyWeapons systemsCost awarenessCost estimatesCost growthProgram costs