Statement of Robert F. Hale, Assistant Director, National Security Division, Congressional Budget Office
Abstract:
Mr. Chairman and members of the Committee, I am pleased to be here this morning to testify on options for improving U.S. strategic mobility i.e., the ability of the United States to transport military forces across long distances. In 1981, as part of an overall review of mobility requirements, the Department of Defense DoD decided it needed the capability to move 66 million ton-miles per day MTMD by air in the event of future military conflicts. The Administration plans to meet that goal by adding 210 of the new C-17 aircraft to its inventory by the year 2000. The Congressional Budget Office CBO estimates the investment costs of this program to be 10.2 billion over the next 5 years. Total costs over 30 years to buy and operate the entire airlift fleet under this plan will be 96.7 billion in constant 1987 budget dollars, discounted at 4 percent, over the 30-year period from 1987 through 2016. Others have proposed meeting the 66 MTMD goal by continuing to buy C-5 and KC-10 transport aircraft now in production instead of the new C-17. CBO finds that the cost of this alternative does not differ greatly from the C-17 option. The C-5KC-10 approach would cost about 3 percent more over the next 5 years, but about 5 percent less over 30 years. There are, however, important differences between the options. The C-17 is a newly designed aircraft that offers qualitative advantages including greater maneuverability and expedited cargo handling. On the other hand, the C-5KC-10 approach would reach the DoD goal of 66 MTMD sooner, and there is less uncertainty about long-term costs. Neither the C-17 nor the C-5KC-10 approach would greatly reduce near-term costs. To do that, the Congress may have to reconsider the goal of 66 MTMD. For example, the Congress could decide not to buy any new strategic airlift and target spending increases on sealift, which is not as quick or as versatile as airlift but is dramatically cheaper per ton carried.