Tactical Aircraft: Restructuring of the Air Force F-22 Fighter Program
NSIAD-97-156
Published: Jun 04, 1997. Publicly Released: Jun 09, 1997.
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Highlights
Pursuant to a congressional request, GAO reviewed the Air Force's February 1997 plans to restructure the F-22 program, focusing on the: (1) estimated cost of the restructured program and viability of cost reduction initiatives; (2) planned timing for realization of benefits from initiatives; and (3) criteria for approving initiation and continuation of production.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | Since the Air Force plans to request approval for the first production lot of F-22 aircraft in FY 1999, the Secretary of Defense, as part of the budget justification for FY 1999, should provide financial plans and cost estimates that clearly identify the basis for cost savings initiatives that have been approved for the program at that time. Because of the potential for cost growth in the F-22 program, the Secretary should also reconsider the potential savings that can be achieved by reducing the performance requirements of the F-22, as previously suggested by the Defense Science Board. |
DOD's actions have been partially responsive to the recommendation. The projected cost savings are inherently incorporated in a December 1998 production contract between the Air Force and Lockheed Martin. The contract includes a target price curve that essentially defines the prices for the first five lots of F-22s. If the contractor fails to meet the target prices projected in the target price curve, it will not be possible to achieve the planned production within the Congressional cost limitation. The target price curve is used for budget preparation. Although the details of cost savings were not provided as GAO recommended they are inherently incorporated into budget projections, and details of the projected cost savings are available from Lockheed Martin. DOD indicated it would consider performance tradeoffs against costs if problems were identified during the flight test program, but said it would not actively seek reductions of F-22 performance characteristics.
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| Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics | The Under Secretary of Defense for Acquisition and Technology should reevaluate the exit criteria for the F-22 to ensure that the integrity of the prior criteria are maintained. |
Although DOD did not concur with the recommendation the Undersecretary for Acquisition and Technology restated and expanded the exit criteria, and the Congress levied certain criteria to be met before initiation of production.
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Weapons systemsAir Force procurementDefense capabilitiesDefense cost controlFighter aircraftFuture budget projectionsMilitary budgetsProcurement planningAircraft acquisition programU.S. Air Force