Pentagon Report: Major Cost Overruns on U.S. Weapons Systems

At least 36 of the Defense Department's major weapons systems, including key fighter-jet, ship, and satellite programs, are affected by significant cost overruns, according to a Pentagon report. Based on year-end figures, 25 programs actually had increases of more than 50 percent from their initial estimates. These include three satellites, the Army's Future Combat system, upgrades of the Bradley fighting vehicle, and two helicopters. Eleven other programs now cost at least 30 percent more than their original estimates, according to the report released on Friday.

Changes in reporting requirements, as directed by the House and Senates Armed Services Committees, showed the number of programs on the list with significant cost increases to be higher than usual. Congress had voiced concern that the military was hiding overruns by changing the traditional ways used to measure program costs. Duncan Hunter, R-CA, said in a statement that this new requirement will serve as ''warning lights in the system" that give the committee ''a basis to analyze the true costs of programs."

Major defense contractors want the Pentagon to continue the practice of evaluating programs against current, rather than against original cost estimates. The Pentagon's system of acquiring major weapons has been scrutinized ? and criticized - for at least 20 years. Hunter, on Wednesday, cited what he characterized as a ''pretty severe case of sticker shock," which members got when they saw that the next Navy destroyer is estimated to cost $3 billion each, and the next aircraft carrier $14 billion.

David Walker, head of the Government Accountability Office, which has issued many reports which document cost overruns, was particularly frank. He said the Defense Department ''has a long-standing track record of overpromising and underdelivering with virtual impunity."