Summary: GAO reviewed the Navy's three-phase Submarine Advanced Combat System (SUBACS) program which was designed to provide nuclear attack submarines with new and upgraded sonar, combat control systems, and advanced data processing capabilities. The review was conducted to determine: (1) the cost, schedule, and performance risks associated with implementing the SUBACS program; and (2) its impact on attack submarine programs.
GAO found that: (1) the total program is expected to cost $853 million more than originally anticipated for research, development, testing, and evaluation; (2) an estimated $146.2 million cost overrun is expected in the basic contract due primarily to increased software and system development, additional test and integration requirements, and subcontractor and vendor production problems; (3) to absorb these increased costs, the Navy will delay several portions of the development program; (4) it will be difficult to meet program schedules because of the class of submarine scheduled to be equipped; (5) severe technical problems have been encountered which have reduced the anticipated data processing speed by about one-sixth; (6) the Navy has accelerated ship delivery schedules which will allow shipbuilders to claim award fees; and (7) the Navy's program management has not emphasized or effectively used program management control procedures. To address these problems, the Navy and its contractor have revised the program several times and the program is no longer being implemented as presented to the Defense Systems Acquisition Review Counsel (DSARC). GAO found that, under the latest plan: (1) SUBACS failed to perform as effectively as originally intended; (2) additional funds will be required; (3) the delivery of the first two submarines may be delayed; and (4) submarines scheduled for authorization in fiscal years 1986 through 1992 could incur increased costs and potential delivery delays.
