Managing risks in mega defense acquisition projects: Performance, policy, and opportunities

This research explores key aspects involved in the process of managing risk associated with acquisition projects within the US Department of Defense (DOD). First, various US Government Accountability Office reports are analyzed to identify the strengths and weaknesses of the DOD's overall program management practices, as well as individual projects. Then, the evolution and progress of United States Army's Future Combat Systems project is examined in detail as a case study to substantiate the argument that insufficient risk management has contributed to project delays and cost overruns significantly. Poor risk management performance and practices are not unique to the Army, but arises from a system bred into the process of gaining approval to implement projects in the DOD. Incorporating a comprehensive risk management plan in the planning phase and filling key project management positions with personnel trained to recognize sound proposals from contractors would make significant strides toward improving overall project management practices in the DOD. (C) 2009 Elsevier Ltd and IPMA. All rights reserved.