B-2 Bomber: Status of Subcontract Options
NSIAD-91-295
Published: Sep 24, 1991. Publicly Released: Oct 21, 1991.
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Highlights
Pursuant to a congressional request, GAO examined the extent to which: (1) a contractor used advance procurement funds provided by the Air Force to acquire components for B-2 aircraft that the Air Force planned to procure in future years; and (2) estimated prices for components being acquired under contract options had increased.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Air Force | The Secretary of the Air Force should make a comprehensive analysis of the alternatives to exercising the options for each of the 36 components listed in appendix 1. The Secretary should also consider the: (1) risks of acquiring components with unstable designs; (2) revised schedules for delivery of aircraft; (3) impact of inflation and the cost of financing the procurements ahead of the dates needed; (4) cost of storing the components; (5) potential obsolescence of the components; and (6) potential expiration of subcontractor warranties and or guaranties. |
Closed – Implemented
Essentially, the intent of the recommendation has been met by the Air Force. Air Force officials indicated that further subcontract options would not be exercised. Funds made available for that purpose have been reallocated to other needs.
|
| Department of the Air Force | The Secretary of the Air Force should complete the analysis for each component before FY 1992 funds are obligated for that component on a contract with Northrop and provide a summary of the analyses with the Air Force's FY 1993 budget request. |
Closed – Not Implemented
Because of the President's decision in connection with the FY 1993 budget submission to reduce the number of B-2s from 75 to 20 operational aircraft, the recommendation to provide a summary of the analysis of subcontract options with the FY 1993 request is no longer valid.
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Topics
Air Force procurementAircraft componentsContract optionsContract performanceDepartment of Defense contractorsMilitary aircraftMilitary appropriationsMilitary cost controlSubcontractsMilitary forces