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GAO-01-369R 1 (2001-02-20)

handle is hein.gao/gaocrptanax0001 and id is 1 raw text is: 



  SGAO

       Accountability * Integrity  Reliability
United States General Accounting Office
Washington, DC 20548



         February 20, 2001

         The Honorable Donald H. Rumsfeld
         The Secretary of Defense
         Subject: Defense Acquisitions: Readiness of the Marine Corps' V-22 Aircraft

                  for Full-Rate Production

         Dear Mr. Secretary:

         In a letter to Secretary of Defense Cohen, dated December 15, 2000, we stated that
         the Marine Corps' V-22 aircraft' was not ready for full-rate production and that the
         Secretary had made a prudent decision to defer that production decision until the
         V-22 Blue Ribbon Panel reports its findings.2 On January 12, 2001, we provided the
         Panel with additional details at their request. A copy of the briefing and briefing
         support material that we presented to the Panel are in enclosures I and II.

         Our conclusions about the program's readiness for full-rate production are based on
         two factors. First, our best practices work, which has identified practices used by
         successful commercial and defense programs to develop and produce quality
         products in significantly less time and at lower costs.3 Our reviews of numerous
         major weapon systems has shown that failure to follow these practices has led to
         cost increases, schedule delays, and performance problems. Second, our analysis of
         Department of Defense assessments and data relevant to the V-22 program and
         interviews with relevant Department officials.

         Our best practices work over the past few years has shown that successful system
         development efforts resolve major technology, design, and manufacturing
         uncertainties prior to the start of production. Thorough test and evaluation, when
         done early, increase the probability that systems will achieve required performance
         levels within agreed-upon time and cost parameters. In July 2000, we reported on
         how best commercial practices for testing and evaluating new products offer ways to
         improve the way the Department conducts test and evaluation on weapon systems.4
         In commenting on our report, the Department stated that it is committed to

         'The V-22 Osprey is a tilt-rotor, short-take-off-and-landing aircraft, which was developed to satisfy
         various combat missions, including medium-lift assault for the Marine Corps.
         2The Panel was appointed by former Secretary of Defense Cohen to review the V-22 Program.
         3See particularly, Best Practices: Successful Application to Weapon Acquisitions Requires Changes in
         DOD's Environment (GAO/NSIAD-98-56, Feb. 24, 1998).
         4Best Practices: A More Constructive Test Approach Is Key to Better Weapon System Outcomes
         (GAO/NSIAD-00-199, July 31, 2000).


GAO-01-369R Defense Acquisitions