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Military Aircraft: Observations on DOD's Aerial Refueling Aircraft Acquisition Options

GAO-04-169R Published: Oct 14, 2003. Publicly Released: Oct 14, 2003.
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Highlights

During the Senate Armed Services Committee's September 4, 2003 hearing on the Department of Defense's (DOD) proposed lease of 100 Boeing KC-767A aerial refueling aircraft, Congress expressed concern about a significant "bow-wave" funding requirement in future years to pay for leasing and then buying these 100 aircraft at the end of their leases, while continuing efforts to modernize the remainder of the tanker fleet. Subsequently, Congress requested that DOD analyze the option of leasing 25 aircraft, followed by a procurement of the remaining 75 aircraft. The Deputy Secretary of Defense responded to the request on September 22, 2003, identifying several alternative acquisition strategies, with associated cost and savings estimates. On September 25, 2003, Congress asked that GAO review the DOD response and assess the validity of the department's assumptions and the accuracy of the cost and savings estimates, and identify any other alternative acquisition strategies that the Committee should consider. This letter responds to that request.

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Air Force procurementContract costsIn-flight refuelingCost effectiveness analysisEquipment leasesMilitary aircraftMilitary cost controlProcurement evaluationProcurement planningAircraft acquisition program