Comment Re:Aerospace FFRDC role? (Score 3, Informative) 43
Failing audits is frankly independent from failing programs. The audits usually have problems tracking money flows and then property within the government. The contractor's expenditures are closely monitored. That doesn't mean they're in-line, but they're auditable. And when the audit discovers problems, there are ways for the government to respond. I've seen those applied rather frequently.
One common pattern is a program starts down the wrong path, and blows initial cost/schedule/performance. But that capability is needed badly (often because its predecessor program didn't deliver). So the Service piles on more requirements and 'readjusts the baseline' for additional funding, because "if we don't get it in this Program of Record, it'll be at least a decade before we can start a new Program of Record to get what we need." That just adds requirements to something that is already behind. If I had to guess what happened here, I bet there's some of that flavor over the execution. In my experience, most programs started with the combination of unachievable or under-specified requirements AND unachievable/unrealistic schedule.
(A 'Program of Record', by the way, consists of an approved requirements document, an approved POM budget for the next 5 years showing the RDTE money, the OPA purchasing money, and the OMA maintenance money FOR EACH FISCAL YEAR. If you run out of RDTE money but haven't finished the design, you're in trouble. The third element is the approved procurement strategy, that says how you'll buy it. That includes the kind of contract, firm fixed price or cost plus, the kinds of oversight, when and how prototypes will be delivered and tested, etc.)