Duncan Blasts $870 Million Air Force Project Cost Overrun

Washington, DC -- Congressman John J. Duncan, Jr. (R-Tenn.) today criticized the mismanagement of the GPS modernization program, which could lead to a lapse in service for millions who rely on GPS navigation.

“The U.S. Air Force is charged with launching and maintaining these satellites…The current modernization program was projected to cost $729 million.  The Air Force has failed to meet cost and scheduling goals for this project.  GAO estimates that this project is $870 million over budget and 3 years past-due.” (Oversight and Government Reform Hearing Memo “GPS: Can We Avoid a Gap in Service”)

The following statements were made by Congressman Duncan during the Oversight and Government Reform Committee hearing on May 7, 2009:

Statement 1

“Thank you very much Mr. Chairman and thank you for calling this hearing.

“Our briefing paper, memorandum says, ‘The current modernization program was projected to cost $729 million.  The Air Force has failed to meet cost and scheduling goals for this project.  GAO estimates that this project is $870 million over budget and 3 years past-due.’

“I remember reading last year a GAO report that said the Pentagon had a total of $295 billion in cost overruns on just its largest 72 weapons systems.  And nobody got upset about that.  Apparently, you’re not supposed to criticize the military in anyway today.  And I think in part it’s because the figures are so high that nobody can comprehend them.  People did get upset about the $328,000 photo mission in New York City.  Maybe they can understand that a little bit better.

“But now, according to our memorandum, one billion, 600 million has been spent on this program and yet it’s still not completed.  And it’s $870 million over budget.  General McCasland is anybody upset about this or are we just going to gleefully go on so that if Chairman Tierney holds a hearing on this a year or two from now people are just going to come in and tell us it’s even more over budget or further behind schedule.  I mean somebody ought to be upset about this.”

Statement 2

“Let me say this, I see my times about to run out.

“It seems to me that federal bureaucrats, in particular the Pentagon, can rationalize or justify or excuse almost anything. 

“It seems to me that it ought to be awfully difficult to make excuses for an $870 million cost overrun.  But I suppose that since it’s money that’s not coming out of anybody’s pocket over there at the Pentagon, people don’t really care that much.  I just think it’s terrible.

“I can’t describe words adequate to express my feelings about this because I have a feeling that if we come in and have this same hearing a year or two years from now, we’re going to hear that there’s even more cost overruns.

“If this was happening in the private sector, either people would be fired or a company would go out of business.

“I think it’s shameful.

“Thank you Mr. Chairman.”