Accession Number:

ADA464361

Title:

Defense Acquisitions: Analysis of Costs for the Joint Strike Fighter Engine Program

Descriptive Note:

Corporate Author:

GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC

Personal Author(s):

Report Date:

2007-03-22

Pagination or Media Count:

23.0

Abstract:

Continuing the alternate engine program for the Joint Strike Fighter would cost significantly more than a sole-source program but could, in the long run, reduce costs and bring other benefits. The current estimated life cycle cost for the JSF engine program under a sole-source scenario is 53.4 billion. To ensure competition by continuing to implement the JSF alternate engine program, an additional investment of 3.6 billion to 4.5 billion may be required. However, the associated competitive pressures from this strategy could result in savings equal to or exceeding that amount. The cost analysis we performed suggests that a savings of 10.3 to 12.3 percent would recoup that investment, and actual experience from past engine competitions suggests that it is reasonable to assume that competition on the JSF engine program could yield savings of at least that much. In addition, DOD-commissioned reports and other officials have said that nonfinancial benefits in terms of better engine performance and reliability, improved industrial base stability, and more responsive contractors are more likely outcomes under a competitive environment than under a sole-source strategy.

Subject Categories:

  • Attack and Fighter Aircraft
  • Economics and Cost Analysis
  • Jet and Gas Turbine Engines

Distribution Statement:

APPROVED FOR PUBLIC RELEASE