Acquisition of the Spider XM-7 Network Command Munition

Our audit objective was to evaluate the overall management of the Spider XM-7 Network Command Munition (Spider) program. Specifically, we determined whether management cost effectively developed and readied the program for the production and deployment phase of the acquisition process and implemented best business practices that are available through acquisition initiatives. We determined that the Army, Program Executive Office for Ammunition, and the Project Manager, Close Combat Systems, were successfully developing and readying the Spider program for the production and deployment phase of the acquisition process in the area of requirements and capabilities, testing, systems engineering, contracting, acquisition strategy, and funding. However, we determined that the Commander, Defense Contract Management Agency, Munitions and Support Systems, Picatinny Arsenal, New Jersey, did not establish and document its program surveillance and support requirements in a performance-based memorandum of agreement between that office and the Project Manager, Close Combat Systems, and the Commander, Defense Contract Management Agency, Boston, Massachusetts, for the Spider program. As a result, the commander could not effectively plan and execute surveillance activities to support desired program management outcomes for the Spider program. We recommend that the Army Project Manager, Close Combat Systems; the Commander, Defense Contract Management Agency, Munitions and Support Systems, Picatinny Arsenal, New Jersey; and the Commander, Defense Contract Management Agency, Boston, Massachusetts, establish a performance-based memorandum of agreement for the Spider program focused on the program office's top priorities and risk areas.