Air Force Declares Nunn-McCurdy Breach on OCX

The Air Force has declared a Nunn-McCurdy breach on its embattled Global Positioning System Next-Generation Operational Control System, meaning the program exceeded the 25 percent cost overrun threshold. Air Force Secretary Deborah Lee James declared the breach on June 30 after quarterly reviews showed inadequate systems engineering at program inception, Block 0 software with high defect rates, and Block 1 designs requiring rework, according to an Air Force release. Program contractor Raytheon received a total of $43.9 million in award and incentive fee payments up to August 2013, but has lost a total of $48.3 million in fees since the contract’s inception. About $64.8 million in fees remains available on the contract, according to the release. The Air Force is required to notify Congress of the breach, followed by a selected acquisition report by the Defense Secretary, and an assessment of the program by Frank Kendall, the defense undersecretary for acquisition, technology, and logistics. The future of the program, either re-certification or termination, is dependent on the findings of the assessment, which is expected to be released in October. The program has been under criticism from inside the Air Force, and some lawmakers have called for cutting all funds to the program unless it is reviewed.