Defense acquisitions : recent F22 production cost estimates exceeded congressional limitation
The Air Force F-22 Raptor is an air superiority aircraft being developed to replace F-15 fighter aircraft. Lockheed Martin Corporation and Pratt & Whitney Corporation are the contractors for the airframe and engine, respectively. Development, which started in 1991, is scheduled to be completed in August 2003. The Air Force plans to enter low-rate initial production in December 2000. Projections of higher production costs have been a source of concern for several years. In 1996, because of potential cost increases, the Air Force established a team-known as the Joint Estimating Team-to review the total estimated cost of the F-22 program. The team concluded that the cost of production could grow substantially from the amounts planned, but that cost reduction initiatives could be implemented to offset that cost growth. The Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics generally adopted the team's recommendations to change certain aspects of the program as well as a plan to define and implement cost reduction initiatives. F-22 production costs were also discussed in the National Defense Authorization Act for Fiscal Year 1998 (P.L. 105-85, Nov. 18, 1997). That act limited the total cost of F-22 production but did not specify the total number of aircraft to be procured. The most recent production costs estimates were completed by the Air Force and the Office of the Secretary of Defense in late 1999. The Air Force's estimate of $40.8 billion and the Office of the Secretary's estimate of $48.6 billion both considered the potential impact of cost reduction initiatives known as production cost reduction plans. The airframe and engine contractors had identified about 1,240 of these plans-totaling $21 billion-in participation with the Air Force's F-22 program office. The Under Secretary of Defense for Acquisition, Technology, and Logistics reviews the status of the F-22 program quarterly, including its cost and affordability.
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achieve additional cost reduction Air Force cost Air Force estimate Air Force officials Air Force reports Air Force’s ability airframe and engine Appendix break in production Comments completing F-22 production Congress congressional cost limitation cost of F-22 cost reduction plans Defense for Acquisition Department of Defense dependent on decisions depot maintenance depot-level maintenance engine contractors estimated reductions estimated to reduce estimating groups exceeded the congressional F-22 Aircraft F-22 production costs F-22 production program F-22 program office F-22s that need Fighter aircraft fiscal Force cost estimators Force or Office implemented Joint Strike Fighter limitation of $39.8 Lockheed Martin Logistics multiyear contract multiyear procurement number of aircraft number of F-22s partially agreed percent plans estimated procuring fewer F-22s production cost estimates production cost reduction proposed cost reduction Quadrennial Defense Review Ranking Minority Member recommendation reconcile the number Secretary and Air Secretary estimate Secretary of Defense status of cost Technology titanium sponge
Página 18 - BEFORE THE SUBCOMMITTEE ON NATIONAL SECURITY, VETERANS AFFAIRS AND INTERNATIONAL RELATIONS, HOUSE COMMITTEE ON GOVERNMENT REFORM ON THE STANDARD PROCUREMENT SYSTEM FEBRUARY 7, 2002 Mr.
Página 16 - 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.
Página 19 - ... and the Honorable Jacob Lew, Director, Office of Management and Budget. Copies will also be made available to others upon request. Should you or your staff have any questions concerning this report, please contact me at (202) 512-6240.1 can also be reached by e-mail at email@example.com. Other points of contact and key contributors to this report are listed in appendix HI.
Página 6 - Force and contractors' criteria for determining if a cost reduction plan is implemented include whether • the contractor has submitted a firm-fixed price proposal that recognizes the impact of the cost reduction...
Página 21 - We performed our work from November 1999 through June 2000 in accordance with generally accepted government auditing standards. Appendix II...