The C-17: Costs and Alternatives
CONGRESSIONAL BUDGET OFFICE (U S CONGRESS) WASHINGTON DC
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The C-17 is an airlift aircraft that is designed to carry all types of cargo over intercontinental distances without refueling. It has features that other airlift aircraft do not provide, and the Air Force intends to use the C-17 to augment its fleet of C-141s and C-130s. The C-17 program has had problems almost since its development phase began in 1981. It has had difficulty meeting the three major criteria against which all acquisition programs are judged-cost, schedule, and technical performance. For example, estimates of the programs costs have grown by nearly 19 billion, or 47 percent, since its inception, excluding the effects of changes in both quantity and expected inflation. And future cost growth may be even greater. Acquisition costs for the program and expected to total about 40 billion, which is close to the original estimate, but that amount will pay for 120 aircraft instead of the original goal of 210. In addition, the program schedule has slipped so that production will end in 2001 instead of 1998 as originally planned.
- Economics and Cost Analysis