Pursuant to a congressional request, GAO provided information on the Air Force F-22 Raptor production cost estimate, focusing on: (1) the status of cost reduction plans, including some plans not yet implemented, and Air Force procedures for reporting on the plans; and (2) a comparison of the 1999 production cost estimates with the congressional cost limitation.
Recommendations for Executive Action
|Department of Defense||1. To enhance the visibility of the Air Force's plans to reduce production costs, the Secretary of Defense should direct the Air Force to report to the Under Secretary of Defense for Acquisition, Technology, and Logistics on the status of the production cost reduction plans each quarter. For each contractor, this report should include, as a minimum, summary information such as the total number of cost reduction plans identified, the number implemented, the total estimated reductions, and the reductions realized to date. The report should also highlight major changes, such as additions or deletions from the list of plans, from the previous report.|
|Department of Defense||2. Since both Office of the Secretary and Air Force cost estimators projected that the F-22 production costs would exceed the congressionally imposed cost limitation and the possibility exists that these cost estimates could increase further if some cost reductions do not materialize, the Secretary of Defense should reconcile the number of F-22s that need to be procured with the congressional cost limitation and report to Congress on the implications of procuring fewer F-22s because of potentially higher costs.|