Case Study 27: From Airborne Laser, GAO-04-643R, May 17, 2004

In 1996, the Air Force launched an acquisition program to develop and produce a revolutionary laser weapon system, the Airborne Laser (ABL), capable of defeating an enemy ballistic missile during the boost phase of its flight. Over the last 8 years, the program’s efforts to develop this technology have resulted in significant cost growth and schedule delay.

The prime contractor’s costs for developing ABL have nearly doubled from the Air Force’s original estimate and additional cost growth is occurring. The cost growth occurred primarily because the program did not adequately plan for and could not fully anticipate the complexities involved in developing the system. The Missile Defense Agency continues to face significant challenges in developing the ABL’s revolutionary technologies and in achieving cost and schedule stability. From 1996 through 2003, the value of the prime contract, which accounts for the bulk of the program’s cost, increased from about $1 billion to $2 billion. According to our analysis, costs could increase between $431 million to $943 million more through first full demonstration of the ABL system. Cost growth has been spurred by rework that was necessary because rapid prototyping forced the program to integrate components before all subcomponents were fully tested. In addition, fabricating ABL’s unique components and developing its complex software proved more costly and time-consuming than anticipated. Although ABL’s prime contractor has added additional personnel to the contract, the program is faced with a bow wave of uncompleted work from prior years. Recognizing that the technology development activities directed by the contract could not be completed within the contract’s cost ceiling, the ABL program office began development of a new cost estimate for completing these activities.

GAO reported these findings on May 17, 2004 in Uncertainties Remain Concerning the Airborne Laser’s Cost and Military Utility, GAO-04-643R.