Weapons Production:

Impacts of Production Rate Changes on Aircraft Unit Costs

NSIAD-91-12: Published: Dec 18, 1990. Publicly Released: Jan 16, 1991.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed the sensitivity of estimated procurement costs for military aircraft to reductions in the quantity of aircraft purchased.

GAO found that: (1) aircraft procurement unit costs generally increased as their procurement rates decreased, but some mature Air Force and Navy procurement programs did not show a significant unit cost increase compared to other aircraft programs; (2) contractors reported that the procurement unit cost was especially sensitive to sudden unanticipated changes in production rates; (3) unit costs were less sensitive when the military planned rate reductions and reduced such fixed costs as overhead and facilities; and (4) contractors needed sufficient advance notice of procurement rate decreases, so that they could eliminate unnecessary facility, overhead, and other costs before the production rate decreases began.

Mar 2, 2015

Feb 26, 2015

Feb 24, 2015

Feb 18, 2015

Feb 11, 2015

Jan 29, 2015

Jan 27, 2015

Jan 21, 2015

Looking for more? Browse all our products here