Foreign Assistance:

Analysis of Cost Estimates for Israel's Lavi Aircraft

NSIAD-87-76: Published: Jan 31, 1987. Publicly Released: Jan 31, 1987.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO evaluated conflicting cost estimates that the United States and Israel prepared for the Lavi fighter aircraft, which Israel is developing to replace its older fighter aircraft.

GAO found that: (1) Israel financed 90 percent of the development and initial production of the Lavi with U.S. foreign military sales (FMS) loans that Congress forgave; (2) the U.S. aircraft industry is heavily involved in the Lavi program; and (3) the Department of Defense (DOD) estimated that the Lavi would cost about $22.1 million per aircraft, or 52 percent more than the Israeli estimate of $14.5 million per aircraft. GAO adjusted the Israeli estimate to make it comparable to the DOD estimate and found that: (1) the Israeli-estimated hourly labor rates and other costs appeared low, while the DOD estimate for labor rates was high; (2) DOD overestimated the aircraft's weight; (3) DOD improperly adjusted its calculations for labor hours; (4) DOD overestimated the cost of materials; and (5) the DOD estimate could have been high by as much as $4.3 million. In addition, GAO found that, even using the lowest estimate, the Lavi's cost will: (1) exceed an Israeli-imposed annual spending limit for the aircraft; and (2) cause Israel to spend an increasing portion of its defense budget on the Lavi and damage its ability to meet its other defense needs.

Mar 28, 2018

Mar 22, 2018

Mar 16, 2018

Mar 8, 2018

Mar 6, 2018

Feb 27, 2018

Feb 14, 2018

Feb 6, 2018

Jan 29, 2018

Dec 14, 2017

Looking for more? Browse all our products here