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Bill will establish new policies and procedures to reduce wasteful cost growth, promote competition, and increase oversight and accountability

This week Congresswoman Chellie Pingree voted in support of HR 2101, the Weapons Acquisition System Reform Through Enhancing Technical Knowledge and Oversight Act of 2009 (WASTE-TKO Act of 2009).  Pingree, a member of the House Armed Services Committee, cosponsored the bill with other Committee members.  WASTE-TKO, which passed the House Wednesday with a strong bi-partisan vote, will ensure greater accountability and cut back on wasteful spending in the federal government while also providing for more efficient and improved resources for our national defense.

A recent report by the GAO indicates that the costs of defense weapon systems programs have already escalated and exceeded initial 2009 estimates by nearly $300 billion.  To put it in perspective, this is more than twice what we spend on the salaries and health care for the entire American military for two full years.  This gross miscalculation of costs is due to inadequate technological knowledge and lack of oversight.  The result is a higher bill for American taxpayers, a decrease in quantity of weapons purchased and a delay in getting these weapons out into the field.

Congresswoman Pingree stated, “It is imperative that we work to cut federal waste and ensure that taxpayers’ dollars are being spent in the most cost-effective manner possible.  We also must make sure that we purchase weapons that are the most advanced and cost-efficient.  This week I fought for both by voting for the WASTE -TKO Act.”

Most additional costs are determined in the early stages of acquisition.  The WASTE-TKO Act ensures greater accountability over the defense weapons purchase process by requiring stronger regulations, preventing conflicts of interest, and increasing focus on failing programs early in the purchasing process.  It will also promote competition in the early stages to get the most cost-effective systems and open the door for small businesses to play a larger role. 

Congresswoman Pingree said, “This is exactly the sort of common sense reform that will ensure taxpayers get the most bang for their buck and reduces wasteful government spending.  I will continue to work to identify areas of government that are bloated and unnecessary while also providing a strong national defense.”

The WASTE-TKO Act of 2009 tackles cost growth in three major ways:

??Ensuring Accuracy of Information for Performance Assessment Requires the Secretary of Defense to designate an official as the Department’s principal expert on performance assessment in acquisition. This official will provide the Department and Congress with unbiased evaluations of just how successful (or unsuccessful) our acquisition programs are.

• Too often there is conflicting information on program performance from the Office of the Secretary of Defense (OSD), the military services, and contractors. This individual will ensure that Congress has the most accurate information to evaluate.

??Providing Intensive Care to Sick Programs Mandates that weapons systems not meeting the standards set in statute for entering system development or with critical Nunn-McCurdy breaches will get additional annual reviews from oversight officials, and additional scrutiny from Congress.

• These programs need more than just a little nudge to get back on track. This bill provides a full ICU to ensure they do.

??Tracking Cost Growth in the Early Stages of Development Requires the Department to set up a new system to track the cost growth and schedule changes that happen prior to milestone B, the decision point where system development begins.

• By the time a program reaches milestone B, 75% of its costs are already locked in place. Currently, there is no process to review alternative solutions when cost or schedule growth occurs during this period.