**GAO-10-439**                      Published: Apr 22, 2010. Publicly Released: Apr 22, 2010.                  

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## Highlights

Cost growth and schedule delays are prevalent problems in acquiring defense weapon systems. Manufacturing systems has proven difficult, particularly as programs transition to production. In December 2008, the Department of Defense (DOD) issued an updated version of its acquisition policy that reflects earlier consideration of manufacturing risks. A joint defense and industry group developed manufacturing readiness levels (MRL) to support assessments of manufacturing risks. Use of MRLs on all weapon acquisition programs has been proposed. In response to a congressional request, this report assesses the manufacturing problems faced by DOD, how MRLs can address manufacturing problems, how MRLs compare to manufacturing best practices of leading commercial firms, and challenges and barriers to implementing MRLs at DOD. In conducting our work, we contacted DOD, military services, and contractors; held interviews with leading commercial firms; reviewed program documents and policy proposals; and spoke with manufacturing experts.

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## GAO Contacts

Michael J. Sullivan
sullivanm@gao.gov

(202) 512-4841

## Office of Public Affairs

Sarah Kaczmarek
kaczmareks@gao.gov

(202) 512-4800

## Topics

National Defense

Best practicesCost effectiveness analysisDefense capabilitiesDefense cost controlDefense industryDefense procurementDevelopment systemsLessons learnedManufacturing industryNeeds assessmentProcurementProcurement planningRisk assessmentRisk factorsSchedule slippagesStandardsTechnologyWeapons research and developmentWeapons systemsSystems designCost analysisCost growth