The remaining 30 UOES interceptors were to be used in operational suitability tests that did not involve firing interceptors. UOES Funding Will Be Committed Before System Capabilities Are Known

The Army anticipates exercising the contract option for the UOES interceptors in the 3rd quarter of 1996 based on the results of only the first 7 of 14 scheduled demonstration and validation flight tests. The Army also plans to conduct a 7-week limited user test after completing the 14 demonstration and validation flight tests. The Army estimates that to transport the full system with 40 interceptors from the United States to a theater of operation will require up to 18 C-5, 26 C-17, or 40 C-141 flights. However, whether for a complete UOES deployment, or a minimum launch capability, the necessary flights may not be available unless UOES is afforded a high priority. Cost Estimate Has Increased

Since September 1992, when the THAAD demonstration and validation contract was awarded, the contractor’s cost estimate for the 40 UOES interceptors has increased by over 100 percent—from $80 million to $165 million. GAO’s Comments

1. 2. Delivery of the 40 interceptors will not be completed until the 3rd quarter of fiscal year 1999.
Why GAO Did This Study

GAO reviewed the Theater High Altitude Area Defense (THAAD) User Operational Evaluation System (UOES) program, focusing on whether planned testing would reasonably demonstrate the capabilities of UOES as an interim system before funds are committed to interceptor production.

What GAO Found

GAO found that: (1) the Army purchased 20 interceptors for demonstration and validation flight tests, of which only 14 will be used in these tests; (2) the Army plans to commit funds for UOES production based on the results of the first 7 of the 14 scheduled flight tests; (3) transporting UOES interceptors from the United States to a theater of operations will require significant airlift resources that may not be available unless UOES is afforded a high priority; (4) the cost estimate for the 40 UOES interceptors has increased from $80 million to $165 million, and THAAD project officials expect that estimate to rise to $220 million; and (5) delivery of the 40 UOES interceptors will be delayed due to increased delivery lead times and reduced fiscal year (FY) 1997 funding.