Chuck Grassley: “I would like to express strong support for section 219 of the bill. This is an excellent provision. It just needs some…”

“I would like to express strong support for section 219 of the bill. This is an excellent provision. It just needs some fine tuning. Section 218 calls for an independent cost estimate of the Air Force F-22 Fighter Program by March 30, 1997. The independent estimate is to be prepared by the Cost Analysis Improvement Group [CAIG]. The last CAIG report on the F-22 was done in 1991--5 years ago. The CAIG has two missions: first, be a cost watchdog at the Pentagon; and second, develop independent cost estimates for major weapons systems. The CAIG's charter is embodied in a small piece of legislation--section 2434 of title 10 of the U.S. Code--developed, in part, by Senator Nunn. Having honest and accurate cost estimates is the key to making smart decisions. Unfortunately, the CAIG's track record is dismal. Historically, it has underestimated actual costs by 25, 50, 75 or even 100 percent or more. In a nutshell, this is the problem: The CAIG uses the notorious ``pass-through'' method of cost estimating. The CAIG relies on the estimates prepared by the contractors and the program offices. The CAIG massages their numbers. The CAIG adds 5 or 10 percent to the price tag--for safe measure. That's the CAIG's cover your fanny maneuver. Then the CAIG ``Chair,'' Mr. David McNicol, wages his magic wand and declares his estimates ``independent.'' The CAIG's highly educated staff acts like a high-priced conveyer belt for shoddy estimates.”