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.

Oct 30, 2014

Oct 16, 2014

Oct 10, 2014

Oct 8, 2014

Sep 30, 2014

Sep 25, 2014

Sep 23, 2014

Sep 19, 2014

Sep 18, 2014

Looking for more? Browse all our products here