TYSONS CORNER, VA, Oct. 27, 2016 — A study conducted by Deloitte has found that the total cost overrun of major defense acquisition programs reached $468 billion in 2015 with a 48.3-percent growth from 2008’s $295 billion, ExecutiveBiz reported Tuesday.
Deloitte said Monday the report found that there is a trend of cost growth and schedule delays on the Defense Department‘s MDAP portfolio with nearly 30 months in average schedule delays.
“Our research indicates that over the past seven years, the problem has persisted, albeit at a decreasing rate of growth, ” said Robin Lineberger, principal for the U.S. aerospace and defense practice at Deloitte Consulting.
“When looking at defense programs with the largest growth or largest declines, we find that those with the largest growth result from quantity increases but also process inefficiencies, design and technical modifications, and major restructuring such as combining programs and changing the mix of items in a manner that delayed schedules or created cost overruns.”
About Executive Mosaic: Founded in 2002, Executive Mosaic is a leadership organization and media company. Executive Mosaic offers highly coveted executive events, breaking business news on the Government Contracting industry, and delivers robust and reliable content through seven influential websites and four consequential E-newswires. Headquarters are located in Tysons Corner, VA. www.executivemosaic.com
Contact:
David Smith
(703) 226-7002
david.smith@executivemosaic.com
