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GAO-10-1020R 1 (2010-09-15)

handle is hein.gao/gaobaanuk0001 and id is 1 raw text is: 



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       Acountabi ty I Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


         September 15, 2010

         The Honorable Carl Levin
         Chairman
         Committee on Armed Services
         United States Senate


         Subject: Joint Strike Fighter: Assessment of DOD's Funding Projection for the
         F136 Alternate Engine


         Dear Senator Levin:


         The Joint Strike Fighter (JSF) program began in 1996 with an acquisition strategy that
         called for a competitive engine acquisition program. The program planned to first
         develop and procure the F135 primary engine and, with a few years lag time, develop
         the F136 second (or alternate) engine to compete with the F135 engine for future
         procurements and life-cycle support activities. The Department of Defense (DOD)
         requested funding for both engines annually as the JSF program progressed until the
         fiscal year 2007 budget submission, at which point the DOD stopped requesting
         funding for the F136 alternate engine. Defense officials believe that the operational
         risks of relying on a single engine supplier are low and do not justify the extra costs
         to maintain a second engine source. DOD further states that there is no guarantee
         that having an engine competition will create enough long-term savings to outweigh
         the up-front costs and now intends to acquire only the F135 primary engine.
         However, Congress has continued to fund the alternate engine development program
         annually through fiscal year 2010.

         According to the Secretary of Defense, DOD would need an additional $2.9 billion in
         funding over the next 6 years to support an alternate engine program up to the point
         where it believes it could begin competition in 2017. This amount includes the
         additional funding DOD says is needed with respect to the alternate engine to finish
         system development and demonstration, allow sufficient time for the contractor to
         gain production experience before DOD begins the competition,' and create a
         logistics support system for the engine. DOD has stated that it has higher priority



         ' This refers to a period of time for noncompetitive procurement of both engines, providing the
         alternate engine contractor an opportunity to gain production experience and learning before DOD
         begins competitive engine procurements.


GAO-10-1020R JSF Alternate Engine Program


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