Defense Does Not. Spends on Software

Transcription

1 -._._..._ _.. -- _.._... _, , _..-.- _._ _- _.^ _-.-.- _ *IIy IV) i * EMBEDDED COMPUTER SYSTEMS Defense Does Not Know How Much It Spends on Software.._..-_ ^ (;AO/Ri IS( -Ok-~i I~R,a Y RESTRICTED?-Not to be reeased outside the Genera Accounting Office uness specificay approved by the Offke of Congressiona Reations. RELEhiN

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3 United States Genera Accounting Office Washington, D.C Information Management and Technoogy Division B Juy 6,1992 The Honorabe Ronad V. Dehrms Chairman, Subcommittee on Research and Deveopment Committee on Armed Services House of Representatives Dear Mr. Chairman:, Today s compex weapons systems cannot work without reiabe software. As such, the importance and cost of this software has increased tremendousy in recent years. This report responds to discussions initiated on December 2, 1991, with staff of the fu committee and subsequent discussions with your office, requesting that we (1) determine if the Department of Defense knows how much it spends on software embedded in weapons systems, and (2) examine what Defense is doing to track and reduce embedded software costs. We briefed your office earier this year on the resuts of our work to that time. As agreed, this report documents the resuts presented at that briefing, and provides additiona information concerning Defense s tracking of weapons systems software costs. The briefing charts are incuded in appendix I. Resuts in Brief Defense weapons systems capabiities are increasingy dependent on software, which is rapidy becoming a very costy and technicay chaenging component. However, Defense does not know how much it spends on this critica technoogy. Estimates of software costs range from $24 biion to $32 biion annuay-about 8 to 11 percent of Defense s tota budget. However, these estimates are rough at best because Defense has not identified or tracked software costs as a discrete item in its weapons systems deveopment programs. Recognizing the importance of tracking software costs, Defense has recenty taken action to require new weapons programs to separatey identify and report software costs. Defense is aso exporing ways to reduce the cost of software. Coecting more compete embedded software cost information coud enabe Defense to more effectivey manage its weapons programs. Page 1 GAOAMTEC-9%62BR Defense s Embedded Software Costs

4 B Background Software is critica to a modern weapons system s abiity to perform key functions, such as communications, detecting and tracking enemies, and targeting and firing weapons. Faiure to perform these functions correcty and in a timey manner can endanger ives and equipment and threaten nationa security. In addition to performing critica functions, software offers increased fexibiity and can repace costy manpower. For instance, updated software gave the Patriot missie added capabiity to defend against SCUD missies in the Persian Guf. The Patriot was originay designed to target cruise missies and aircraft, but modifications to its software made it adaptabe to intercept SCUD missies. In addition, as our miitary forces are reduced, software wi be increasingy reied upon to perform roes once reserved for trained personne. For exampe, software for the C- 7 aircraft is expected to eiminate the need for a navigator and a fight engineer. However, any new software must be appropriatey designed and deveoped to ensure that weapons systems effectivey perform their missions. Because of software s critica roe in weapons systems, Defense s demand for software is continuousy increasing. For exampe, the Air Force s F-4 fighter of the Vietnam war era had practicay no software, whie today s F-14D fighter reies upon over 1 miion ines of computer code to perform its mission. The next generation fighter aircraft, the Advanced Tactica Fighter, is expected to rey upon 7 miion ines of code. According to some estimates, the baistic missie defense system, known as the Strategic Defense Initiative, coud have 40 miion to 100 miion ines of code. Defense Has Not Tracked Embedded Software Costs Despite its increasing importance, Defense has not tracked embedded software costs and therefore does not know how much it spends on this critica technoogy. Estimates of tota 1992 software expenditures range from $24 biion to $32 biion, or approximatey 8 to 11 percent of Defense s budget. However, these estimated costs are for deveoping and maintaining software for a Defense systems, incuding embedded, command and contro, and automated information systems. Estimates aso indicate that tota annua software costs coud increase to about $50 biion in the next 15 years, eventuay accounting for amost 20 percent of Defense s overa budget. Whie these estimated software costs are significant by themseves, they are dwarfed by the biions of doars being invested by Defense in the weapons systems that depend so heaviy upon the software. a Page 2 GAO/IMTEC-92-62BR Defense s Embedded Software Costs...,.,

5 B This estimate of annua software costs is not, however, we-supported. The cost estimates were not generated by Defense statistics, but rather by externa sources, such as trade associations and defense media. According to both senior Defense information technoogy officias and these externa sources, the estimates were not deveoped using actua software cost data. For exampe, information used to deveop the software cost estimates was generay drawn from budget projections and trend anayses, which were often based on insufficient or incompete information. In addition, these tota software cost estimates do not separate embedded software costs from tota weapon system costs. It is important that Defense track its software costs because of the biions of doars invoved. Good cost data are needed to assess and hep manage software expenditures, as we as to hep deveop more effective software metrics1 for future software cost estimating. Moreover, Defense s prediction that software costs wi increase dramaticay over the next 15 years underscores the need to obtain as much reiabe data as possibe. Defense has not tracked embedded software costs in the past because, in most cases, software has not been managed as a discrete item. Weapons systems programs and contractors have not been required to separatey identify and report software costs because the work breakdown structure2 and cost accounting for weapons systems make it difficut to separatey identify software costs. Furthermore, Defense does not have a foca point to pan and manage software issues incuding costs. Consequenty, there is no Defense repository for coecting and anayzing overa embedded software costs. According to Defense officias, software cost information has generay been (1) reported as part of the tota system or subsystem in which the software is embedded and (2) avaiabe ony at the contractor eve. Software metrics are toos for monitoring and managing software projects. These toos use mathematica modes to measure eements of the deveopment process, such as time, cost, and resources. This information aows organizations to better understand and manage the reationships among resource decisions, deveopment schedues, and the cost of software projects. A work breakdown structure is a description of work tasks that describes the required product, as we as any work that needs to be accompished to deveop the required product. Page 3 GAOAMTEC-92-62BR Defenee s Embedded Sofhvfwe Costs

6 B Defense Is Now Acting to Track and Reduce Software Costs In recognition of the importance of tracking software costs to improve software management, Defense recenty revised its poicy guidance for acquiring weapons systems. Defense Instruction , Defense Acquisition Management Poicies and Procedures, was changed to require that any weapons systems begun after February 23,199 1, shoud identify and report software costs separate from other costs. The effect of this revision is that embedded software costs wi be more visibe, since weapons systems contractors wi have to provide software cost information as part of the work breakdown structure. The software-intensive Advanced Tactica Fighter program is one of the first weapons systems to require software cost reporting under this guidance. Defense aso recenty prepared its Software Technoogy Strategy, a ong-term strategy intended to cut software costs, reduce software deveopment probems, and use software to increase the capabiity of mission-critica systems by the year In its strategy, Defense proposes to take actions to reuse software, avoid expensive rework during deveopment, make software easier to modify once deveoped, everage commercia technoogy, and expore new software engineering techniques. Defense predicts that impementing this pan wi cut software ife-cyce costs in haf, thereby providing savings as we as the means to obtain additiona software capabiity. Defense is currenty obtaining pubic comments on its strategy and hopes to issue a fina version by the end of Observations Software has become one of the most critica and expensive eements of today s weapons systems, yet Defense has ony recenty begun to track these software costs. We beieve Defense cannot effectivey manage its weapons programs uness it separatey identifies, tracks, and manages software as a discrete item. Defense s new requirement that weapons programs report software costs separatey is a step in the right direction. However, most weapons system programs do not report software costs because they began prior to impementation of the new poicy. Unti more compete embedded software cost information is coected, Defense wi not accuratey know how much it is spending on this critica technoogy area. More importanty, greater visibiity of software costs is essentia for effective management of expensive weapons systems deveopment programs. As Defense improves its coection of basic embedded cost data, it shoud be abe to use these data to more effectivey estimate and contro software costs. In addition, reiabe software cost a Page 4 GAOiIMTEX-92-62BR Defense s Embedded Software Costs

7 B information shoud support better decision-making, software risk contro, and improve management of weapons systems deveopment programs. We performed our work in accordance with generay accepted government auditing standards between February 1992 and June We did not provide a draft of this report to the Department of Defense for its review and comment. Instead, we discussed the draft report s contents with senior Defense information technoogy officias and have incorporated their views as appropriate. These officias generay agreed with the facts and observations in this report. As arranged with your office, uness you pubicy announce its contents earier, we pan no further distribution of this report unti 30 days from the date of this etter. At that time, we wi send copies to the Chairmen of the Senate and House Appropriations Committees; the Chairman of the Senate Armed Services Committee; the Secretaries of Defense, the Air Force, the Army, and the Navy; and the Director, Office of Management and Budget. We wi aso make copies avaiabe to others upon request. If you have any questions about this report, pease contact me at (202) Other major contributors are isted in appendix II. Sincerey yours, Samue W. Bowin Director, Defense and Security Information Systems Page 5 GAO/IMTEC-9%62BR Defense s Embedded Software Costs

8 Appendix I Briefing Charts w Information Management and Technoogy Division Embedded Computer Systems: Defense Does Not Know How Much It Spends on Software Presented to the Subcommittee on Research and Deveopment, House Armed Services Committee a Page 6 GAO/IMTEC-92.62BR Defense s Embedded Software Costs

9 Appendix I Briefing Charta GAL) Objectives Determine if Defense knows how much it spends on embedded software Examine what Defense is doing to track/reduce software costs Y Page 7 GAO/IMTEC-9242BR Defense s Embedded Software Costa

10 Appendix I Briefing Charts GAO Points for Discussion Embedded software is critica to weapons systems Defense demand for software continues to grow Embedded. software costs are not being taken to track/reduce software costs Observations a Page 8 GAO/IMTEC-9242BR Defense s Embedded Software Costs _,..,....,.,y;, ;*,;.

11 Appendix I Briefing Charts m Embedded Software Is Critica to Weapons Systems Performs critica functions such *Enemy detection Offers fexibiity to change weapon capabiity, e.g., Patriot Can repace costy manpower Page 9 GAOAMTEC-92-62BR Defense s Embedded Software Costs

12 Appendix I Briefug Charto GAQ Defense Demand for Software Continues to Grow 1960s F-4: amost no computer code 1970s F- 4: 32K ines 1980s C- 7: 1.3M ines s ATF: 7M ines 1990s SDI: 40- OOM ines Page 10 GAOfiMTEC-9242BR Defense s Embedded Software Costs

13 Appendix I Briefing Charts m -- Embedded Software Costs Are Not Tracked No reiabe embedded software costs 0 No one responsibe for coecting software costs 0 Rough estimates pace tota annua software costs at $24 biion to $32 biion a Page 11 GAO/IMTEC-92-62BR Defense s Embedded Software Costs

14 Appendix I Briefing Charts -- w Embedded Software Costs Are Not Tracked (cont.) Tota software costs are about 8-I 1% of Defense budget; may reach 20% by Embedded software not managed as a discrete item Page 12 GAO/IMTEC-92-62BR Defense s Embedded Software Costs

15 Appendix I Briefing Charts GM) Embedded Software Costs Are Not Tracked (cont.) Defense needs cost data to good and hep contro software expenditures to avoid costy overruns ahep deveop effective software metrics for future estimates Page 13 GAO/IMTEC-92-62BR Defense s Embedded Software Costs

16 Appendix I Briefing Charts m Actions Being Taken To Track/Reduce Software Costs New Instruction requires reporting of software costs 0 Defense Software Technoogy Strategy aims to reduce cost.atf is one of the first weapon systems to require software cost reporting Page 14 GAO/IMTEC-9%62BR Defense s Embedded Software Costs

17 Appendix I Brefng Charts m Observations *Defense does not know how much it spends on software Difficut to manage what cannot be measured Defense needs reiabe software cost data to effectivey manage weapons programs Page 15 GAO/IMTEC-92-62BB Defense s Embedded Software Costs

18 Appendix II Major Contributors to This Report Information Management and Technoogy Division, Washington, D.C. John B. Stephenson, Assistant Director Kirk J. Daubenspeck, Assignment Manager Aicia L. Sommers, Evauator-in-Charge Chery M. Dottermusch, Technica Adviser Shane D. Hartzer, Writer-Editor (6Od4) Page 16 GAO/IMTEC-9%62BR Defense s Embedded Software Costs

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