Summary: Studies done by the military and independent sources cited the following problems in the Theater High Altitude Area Defense (THAAD) Program: First, the program's compressed flight-test schedule did not allow for adequate ground testing, and officials could not spot problems before flight tests. The schedule also left too little time for preflight testing, postflight analysis, and corrective measures. Second, the requirement that an early prototype system be deployed quickly has diverted attention from the normal interceptor development process and resulted in interceptors that were not equipped with sufficient instruments to provide optimum test data. Third, quality assurance received too little emphasis and resources during component production, resulting in unreliable components. Fourth, the contract to develop the interceptor was a cost-plus-fixed-fee contract, which placed all of the financial risk on the government and did not hold the contractor accountable for less than optimum performance. The restructure program addresses each of these four underlying problems. However, the reliability of current flight-test interceptors remains a concern because most components were produced when the contractor's quality assurance system was inadequate. Test failures caused primarily by manufacturing defects rather than advanced technology problems have prevented the Army from demonstrating that THAAD can reliably intercept targets in all required regions. The restructuring of the THAAD program raised the issue of what the purpose of the User Operational Evaluation System battalion at Fort Bliss should now be. Whether all or only part of the battalion would warrant deployment for contingency operations would depend on the capabilities it could provide to warfighters and the priority of the need for one or more of those capabilities. However, there would be little basis for making a deployment determination because the Defense Department does not plan to conduct an operational assessment of the User Operational Evaluation System.
