GAO's Views on SDIO's Phase I Cost Estimate
GAO's Views on SDIO's Phase I Cost Estimate

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Published: 1989

Total Pages: 23

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I am pleased to appear before the Subcommittee today to discuss our review of changes in the Strategic Defense Initiative Organization's (SDIO) estimate of the cost for acquiring and deploying Phase I of the Strategic Defense Initiative (SDI). In June 1987 SDIO estimated that the cost to deploy Phase I of SDI would be between $75.6 billion and $145.7 billion (fiscal year 1988 dollars). In June 1988 SDIO estimated that Phase I would cost $115.4 billion (fiscal year 1988 dollars). In October 1988 SDIO estimated (the current estimate) that Phase I would cost $69.1 billion (fiscal year 1988 dollars). You asked us to explain the difference between the June 1987 high estimate of $145.7 billion and the current estimate of $69.1 billion. Although we have not completed our review, it appears that the decrease resulted primarily from: reductions in the quantities of some items to be produced and deployed; changes in technical characteristics of some items; and differences in the models used to estimate the costs.

STRATEGIC DEFENSE INITIATIVE PROGRAM: Basis for Reductions in Estimated Cost of Phase I.
STRATEGIC DEFENSE INITIATIVE PROGRAM: Basis for Reductions in Estimated Cost of Phase I.

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Published: 1990

Total Pages: 10

ISBN-13:

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In June 1987 the Strategic Defense Initiative Organization (SDIO) estimated that the Phase I Strategic Defense System would cost between $75.6 billion and $145.7 billion. In October 1988 SDIO reduced its estimate to $69.1 billion. The Chairman, Legislation and National Security Subcommittee, House Committee on Government Operations, asked GAO to (1) assess the credibility of the October 1988 estimate of $69.1 billion and (2) determine the reasons for the cost reductions. To accomplish these objectives, the Chairman agreed that GAO would limit its review to the June 1987 and October 1988 estimates for four of the nine phase I elements-the Space-Based Interceptor (SBI); Ground-Based Surveillance and Tracking System (GBSTS); Battle Management and Command, Control, and Communications (BM/c3); and launch systems.