Summary: The investments to acquire and operate major weapon systems have a heavy impact on the allocation of national resources. Because the United States must live with a relatively fixed defense budget, major cost increases contribute to the procurement of far fewer units of weapons than our military leaders say we need to maintain an adequate defense posture. Also, the tremendous investments in research, development and production of new weapons systems limits the funds available for spare parts, munitions, and other necessary support. Some of the factors that lead to cost growth are: low preliminary cost estimates; the high technology policy; inflation; insufficient funds to schedule production at the most economical rates; and the "bow wave" in defense funding. More realistic planning and development cost estimates would be a critical step in determining whether a program should enter production. Multiyear funding would encourage greater contractor investment and enable more economic rates of production. Mission area budgeting and prioritization of program elements within each mission area would also help reduce costs.
