Military Airlift:

The C-17 Program Update and Proposed Settlement

T-NSIAD-94-166, Apr 19, 1994

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GAO discussed the status of the Department of Defense's (DOD) C-17 program, focusing on: (1) C-17 cost, schedule, and performance issues; and (2) the proposed settlement agreement with the prime contractor. GAO noted that: (1) the C-17 program continues to experience cost, schedule, and performance problems; (2) the current estimate for the C-17 program now exceeds the $43 billion estimate; (3) delivery schedules have slipped but are improving; (4) the contractor has delivered aircraft with known deficiencies; (5) C-17 aircraft cannot meet current payload or range specifications; (6) although the contractor is resolving some technical problems, other problems continue including immature mission computer software and inadequate built-in capability; (7) poor contractor performance, overly ambitious cost and schedule goals, too much concurrency, and poor Air Force management have affected the C-17 program; (8) DOD needs to determine the minimum number of C-17 aircraft needed for specialized military airlift operations and to pursue a strategy to acquire nondevelopmental aircraft for additional airlift requirements; and (9) Congress should not endorse the proposed settlement until C-17 performance issues are resolved.