Pentagon must explain, justify cost overruns

Posted on: Feb. 22nd, 2006 || Source: today.reuters.com | E-mail Article | Print Article

WASHINGTON (Reuters) - A provision in the 2006 defense spending law requires the Pentagon to take a closer look at cost overruns in most big U.S. weapons programs and conduct time-consuming assessments of them, according to defense officials and analysts.

While no programs are expected to be terminated because of cost overruns, the new law means military officials will have to justify the extra costs to Congress, they said.

Pentagon acquisitions chief Kenneth Krieg told reporters earlier this month that the law enacted on January 6 would have "significant effects," and officials were still trying to sort out the impact on major programs.

Two Northrop Grumman Corp (NOC.N: Quote, Profile, Research) programs -- the National Polar-orbiting Operational Environmental Satellite System (NPOESS) and its Global Hawk unmanned aerial vehicle program -- have already been identified with cost overruns, said Pentagon spokeswoman Cheryl Irwin.

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