Evaluation of the Unit Cost Exception Reports on the High Speed Anti-Radiation Missile

GAO reviewed four unit cost exception reports submitted by the Secretaries of the Navy and Air Force explaining increases in the High Speed Anti-Radiation Missiles (HARM) joint program.

GAO found that, although the reports generally provided the required unit cost information, they did not present a complete picture of a joint Department of Defense (DOD) program. Each service based its program estimates on different acquisition strategies, even though only one strategy can be followed. GAO also found that the reports did not disclose other reasons contributing to the differences in unit costs or fully explain increased costs. Procurement strategies to obtain prime contractors and program cost estimates are inconsistent due to the conflicting views. GAO concluded that, since the Navy and the Air Force significantly disagree on a program approach, DOD is responsible for reconciling the differences.