Thursday, March 12, 2009

GAO: JOINT STRIKE FIGHTER Accelerating Procurement before Completing Development Increases the Government's Financial Risk

GAO: JOINT STRIKE FIGHTER Accelerating Procurement before Completing Development Increases the Government's Financial Risk

March 12, 2009
Highlights of GAO-09-303, a report to congressional committees

Why GAO did this study?
The Joint Strike Fighter (JSF) is the Department of Defense’s (DOD)
most complex and ambitious aircraft acquisition, seeking to simultaneously produce and field three different versions of the aircraft for the Air Force, Navy, Marine Corps, and eight international partners. The total investment required now exceeds $1 trillion—more than $300 billion to acquire 2,456 aircraft and $760 billion in life cycle operating and support costs, according to program estimates.

The Ronald W. Reagan National Defense Authorization Act for Fiscal Year
2005 requires GAO to review the JSF program annually for 5 years. This is the fifth and final report under the mandate in which GAO (1) determines the program’s progress in meeting cost, schedule, and performance goals; (2) assesses manufacturing results and schedule risks; and (3) evaluates development test plans, progress, and risks. GAO’s work included analyses of a wide range of program documents, cost data and interviews with defense and contractor officials.

What GAO Recommends
GAO recommends that DOD (1) report to the congressional defense committees on the risks and mitigation strategy for use of cost reimbursement contracts for procurement and plans to transition to fixed price contracts and (2) ensure that the prime contractor performs periodic schedule risk analyses to improve schedule and budget actions. DOD agreed to take these actions.


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