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"G.A.O. Report Points to Rise in Cost Overruns at Pentagon" by Bloomberg News, New York Times

Inefficient Pentagon management led to cost increases for key weapons programs that often fell short of production goals last year, government auditors said Monday.

In its sixth annual report on selected weapons purchases, the auditors, with the Government Accountability Office, found that procurement costs came in 26 percent above original estimates for 72 major weapons programs in 2007. The office also found that many programs had been delayed or produced fewer weapons than initially planned.

The report attributed the problems to inefficient Pentagon practices, including changes in requirements after weapons development had started, turnover in program management and the use of contractors.

“Every dollar spent inefficiently in developing and procuring weapons systems is less money available for many other internal and external budget priorities,” the report said.

Planned Pentagon investment in new weapons systems doubled to $1.6 trillion in 2007 from $790 billion in 2000, hitting its highest level in two decades, the report said. .

The 198-page report highlighted cost increases at several major programs, including the Joint Strike Fighter, a fighter jet being developed by the Lockheed Martin Corporation, the cost of which is now put at $240 billion, up from a targeted $203 billion in 2001, and the Future Combat Systems, a massive Army modernization effort being led by the Boeing Company, now put at $128.5 billion, up from $88.3 billion as of 2003.

The annual study will go to a number of key Congressional committees, including the Armed Services Committees and the Defense Appropriations Subcommittees in the Senate and House.