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MASAD-82-8 1 (1981-12-01)

handle is hein.gao/gaobabcrf0001 and id is 1 raw text is: -, : UNITEO $TATES GENERAL ACCOUNTING OFFICE !WASHINGTON, D C. 20548 MISSION ANALYSIS AND WA yVV SYSTEMS ACQUISITION DIVISION B-201273 DECEMBER 1, 1981 The Honorable Caspar W. Weinberger i The Secretary of Defense I I Attention: Assistant for Audit Reports 116954 Dear Mr. Secretary: Subject: 'The Army's Advanced Attack Helicopter Is Not Ready for Production (MASAD-82-8) We have been reviewing the status of the Army's Advanced Attack Helicopter (AH-64) and laser Hellfire missile programs. Although our review is not yet complete, we have several concerns in view of the imminent decision on the merits of starting produc- tion of these two weapon systems. New program cost estimates prepared by the Army indicate that AH-64 procurement costs would increase by 40 to 50 percent from the $4.8 billion reported in the September 1981 Selected Acquisition Report. This major increase created an affordabil- ity problem and the Army now intends to reduce the total program quantities from 536 to 446 aircraft. With this change, the pro- jected AH-64 unit production cost now exceeds $13 million. The merits of producing the AH-64 and Hellfire must be weighed against resulting reductions in funds available for other programs. Should you decide to continue with plans to produce AH-64/ Hellfire, a number of risks and uncertainties still exist about the new systems that warrant delaying the start of their production until better information and more thorough analyses are provided. We have five basic concerns: --The data currently available for decision purposes includes data derived from tests of two key subsystems--the target acquisition designation sight (TADS) and the helicopter engine--whose configurations will differ from the subsys- tems to be made a part of the production aircraft. --Caution should be used in accepting the AH-64's reported reliability, availability, and maintainability calculations (951623) 7<

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