Sharing the Defense Burden:

The Multinational F-16 Aircraft Program

PSAD-77-40: Published: Aug 15, 1977. Publicly Released: Aug 15, 1977.

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The F-16 is a multibillion dollar program calling for coproduction of a new fighter aircraft by a consortium consisting of Belgium, Denmark, the Netherlands, Norway, and the United States. The arrangement should aid in standardization of weapon systems in the North Atlantic Treaty Organization, provide a low cost fighter, and increase industrial activity for participants. The coproduction show the effect of European participating governments' program costs. However, the advantages of coproduction may outweigh the difficulties and added costs.

Matter for Congressional Consideration

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Matter: The Armed Services and Appropriations Committees of the Congress should carefully explore the impacts on schedules and costs of any proposed U.S. funding changes, especially as they affect the participating European governments. The Secretary of Defense should instruct the Secretary of the Air Force to closely monitor the development of: (1) a cost accumulation and estimating system that will accurately show the effect of European participating governments coproduction on U.S. Air Force aircraft costs and on the European participating governments' not-to-exceed price; and (2) the development of a system for monitoring progress in accomplishing the Memorandum of Understanding offset commitments, both in terms of dollar value and quantities of equipment items. Particular care should be taken to avoid the use of not-to-exceed prices and to avoid any implication that changes are unlikely in negotiations for future acquisition of the weapons system. (Author/SC)

 

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