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Joint Strike Fighter: Accelerating Procurement before Completing Development Increases the Government's Financial Risk

Authors: Greg Campbell; Michael Sullivan; Bruce Fairbairn; Matt Lea; Charlie Shivers; Ridge Bowman; Georgeann Higgins; Karen Richey; Tim Boatwright; GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
 
Abstract: JSF development will cost more and take longer than reported to the Congress last year, and DOD wants to accelerate procurement believing that will more quickly recapitalize tactical air forces. The program office estimates that an additional $2.4 billion is needed for cost overruns on the air system and engine contracts and for a 1-year extension to the development schedule. Its estimate does not include funding for the alternate engine program. An independent joint DOD cost estimating team identified a need for as much as $7.4 billion in additional funding for development through fiscal year 2015 and a 3-year schedule extension. This would increase total system development costs to $51.8 billion --a 17 percent increase from the April 2008 estimate-and delay completion of development to October 2016. The joint team's cost estimate was higher than the program office's estimate because it included the alternate engine effort directed by the Congress and made more conservative assumptions about engineer staffing levels, software requirements growth, manufacturing labor hours, and flight testing. Despite development cost increases and schedule delays, DOD officials want to accelerate JSF procurement by purchasing an additional 169 aircraft from fiscal years 2010 through 2015. This would require up to $33.4 billion in additional procurement funding for those 6 years and expose the government to additional risk from future cost increases because of the contract type. The plan would not increase the total JSF quantity through completion, but would buy these aircraft earlier than planned. DOD did not estimate the net effect this plan would have on future procurement funding to complete JSF acquisition.

Limitations: APPROVED FOR PUBLIC RELEASE
Description: Congressional rept.
Pages: 52
Report Date: Mar-2009
Report Number: A999494
Keywords relating to this report:
*COMPETITION
*COST ESTIMATES
*DEPARTMENT OF DEFENSE
*FLIGHT TESTING
*JOINT MILITARY ACTIVITIES
AIR FORCE OPERATIONS
AUDITING
CONGRESS
COST OVERRUNS
FIGHTER AIRCRAFT
MANUFACTURING
SCHEDULING
STRIKE WARFARE
TACTICAL AIR SUPPORT
TEAMS_PERSONNEL_
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