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GAO-06-717R 1 (2006-05-22)

handle is hein.gao/gaocrptatmw0001 and id is 1 raw text is: SpGAO United States Government Accountability Office Washington, DC 20548 May 22, 2006 The Honorable John Warner Chairman Committee on Armed Services United States Senate The Honorable Curt Weldon Chairman Subcommittee on Tactical Air and Land Forces Committee on Armed Services House of Representatives Subject: Tactical Aircraft: DOD's Cancellation of the Joint Strike Fighter Alternate Engine Program Was Not Based on a Comprehensive Analysis The Department of Defense (DOD) expects to purchase about 2,400 Joint Strike Fighter (JSF) aircraft, with potential international sales of 2,000 to 3,500 aircraft. When the number of aircraft engines and spare parts expected to be purchased is considered-along with the lifetime support needed to sustain the engines-the future financial investment will be significant. DOD implemented the JSF alternate engine development program in 1996 to provide competition between two engine manufacturers in an effort to achieve cost savings, improve performance, and gain other benefits. Since then, DOD has invested $1.2 billion in the alternate engine program, and, in August 2005, it awarded a $2.4 billion contract for system development and demonstration of an alternate engine. However, in its fiscal year 2007 budget submission, DOD proposed canceling the alternate engine program. Concerned whether this decision was based on sound analysis, you asked us to review DOD's rationale for canceling the program and the analysis supporting it, including the life cycle savings, benefits, and risks assessed. To determine DOD's rationale for and analysis supporting the decision to cancel the alternate engine program, we obtained and discussed data from the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics; the Office of the Director of Program Analysis and Evaluation; and Air Force and Navy acquisition offices. We also interviewed officials from the Office of the Director, Operational Test and Evaluation, and the F-22A engine office, the predecessor engine for the JSF engine. We reviewed the data, analyses, assumptions, and results of two prior GAO-06-717R JSF Alternate Engine Program Page I

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