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Air Force Logistics: C-17 Support Plan Does Not Adequately Address Key Issues

NSIAD-99-147 Published: Jul 08, 1999. Publicly Released: Jul 08, 1999.
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Highlights

Pursuant to a legislative requirement, GAO reviewed the Air Force's C-17 logistics support plan, focusing on the: (1) C-17's core logistics capabilities; (2) cost effectiveness of the planned support strategy; and (3) Air Force's implementation of the plan under current law.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Secretary of the Air Force to update the Air Force's core analysis to include the C-17 airframe and subsystems and provide this information with the fiscal year 2001 President's budget.
Closed – Implemented
The Air Force agreed with the intent of the recommendation, but stated that it would complete a C-17 core analysis by 2002 to dovetail with its final support decision in 2003. Initially, the Air Force did not plan to accelerate its C-17 core analysis and provide the information with the fiscal year 2001 budget, as GAO had recommended. However, on August 10, 1999, the Principal Deputy Under Secretary of Defense directed the services to identify their core logistics capabilities for depot level maintenance and repair by December 23, 1999. The Air Force completed its core analysis which included the C-17 aircraft on January 18, 2000.
Department of Defense The Secretary of Defense should direct the Secretary of the Air Force to develop a more specific logistics resourcing plan that includes a comprehensive cost-effectiveness analysis and evaluation metrics prior to the submission of the 2001 budget.
Closed – Implemented
The Air Force initially said that it would follow its normal Source of Repair Assignment Analysis (SORAP) process, which includes a cost analysis. The Air Force's SORAP process does not identify specific cost elements, data sources, or methodologies for performing the cost analysis, so GAO would consider this action to be unresponsive. However, subsequently the Air Force decided to redirect its approach for making a C-17 life-cycle support decision for logistics including developing a methodology that will consider CORE requirements and best-value. A January 31, 2002, SAF/AQ memo documented the Air Force's decision to prepare a business case analysis documenting the program office's decisions regarding placement of CORE and non-CORE workloads. The program office has completed an extensive business case analysis concluding that the Air Force will use contractor logistics support for the C-17, but that significant C-17 workload has a CORE maintenance requirement, and that this workload will be accomplished at the three Air Force depots. The business case analysis allows for additional work to be performed at these depots based on future cost-effectiveness determinations.
Department of Defense The Secretary of Defense should direct the Secretary of the Air Force to develop budget requirements for public depot funding consistent with having this capability as a support option, including incorporating requirements in the fiscal year 2001 Program Objective Memorandum.
Closed – Implemented
The Air Force did not incorporate funding requirements in to the fiscal year (FY) 2001, Program Objective Memorandum (POM) to support public depot maintenance as a final support decision. The Air Force said it plans to include about 10 percent of the funds necessary to establish organic capability in the FY2002 POM. The Air Force said that placing the funds in the FY2001 POM would have made funds available in 2003, the year of the decision. Air Force (IL) officials said that it is likely that they will not make a final support decision until near the end of FY2003. Consequently, there may be no executable funding requirements in the year of the decision. To preclude tying up funds in FY2003 that could be used to fund other requirements, the Air Force said it will program for public depot funding in the FY2002 POM, so that funds will be available in FY2004 for depot facilitation.
Department of Defense If the Department of Defense decides to implement the current support plan, the Secretary of Defense should seek legislative authority to allow military depots to sell depot maintenance goods and services to the C-17 support contractor, notwithstanding the commercial availability of those repair services.
Closed – Not Implemented
The Air Force believes its actions, taken and planned, regarding the depot sale of goods and services to the C-17 support contractor are consistent with existing law. The Air Force has not, and does not, plan to seek special legislative authority to allow depots to sell goods and service to the C-17 support contractor, notwithstanding the commercial availability of those repair services.

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Topics

Air Force procurementCost effectiveness analysisDefense capabilitiesDepartment of Defense contractorsEquipment maintenanceLogisticsMilitary aircraftMilitary cost controlPrivatizationStrategic planning