USAF Program Costs Up Largely Due Increased Units, Services

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Unread post12 Nov 2020, 20:17

TABLES in PDF from whence numbers below flow: ... C_2019.PDF (0.6Mb)
USAF Program Costs Up Largely Due to Increased Units, Services Purchased
10 Nov 2020 John A. Tirpak

"...the joint-service F-35 program cost $206 billion less in base-year and $32.8 billion less in then-year dollars, “driven by incorporation of the Lot 11 actuals as well as the negotiated values for Lot 12-14 procurement.” F-35 program costs declined by $19 billion in base-year 2012 dollars and by $30.7 billion in then-year dollars, or $18.7 billion in base year 2012 dollars and $30.4 billion in then-year dollars when sustainment costs are included.

Some of the effects of expelling Turkey from the F-35 program were reflected in higher research, development, test, and evaluation costs, which increased by $1.6 billion in base-year and $2.1 billion then-year dollars. The boost in RDT&E was due to “several factors, including the need for program-aligned training systems, revised partner cost-sharing arrangements, and the extension of Block 4 through 2025.” Block 4 is the current upgrade program, intended to produce continuous software updates.

The F-35’s Unit Recurring Flyaway Cost, which includes the aircraft and the engine, dropped by $12.5 million for the F-35A used by the Air Force; $8.6 million for the F-35B version used by the Marine Corps, and $7.6 million for the F-35C used by the Navy. The Average Procurement Unit Cost fell by $8.4 million in base-year dollars and $7.6 million in then-year dollars.

The Pentagon did not update its F-35 operations and sustainment cost estimates, last calculated in fiscal 2018. It noted that the Joint Program Office is working to reduce O&S costs and is developing revised numbers for aspects such as beddown costs, “updated labor rates, removing Turkey [from the program], …updating fuel burn rates,” and other expected cost savings...."

Source: ... purchased/

Department of Defense - Comprehensive Selected Acquisition Reports for the Annual 2019 Reporting Requirement as Updated by the President’s Fiscal Year 2021 Budget
As of 26 May 2020 DoD

"The Department of Defense (DoD) has released details on major defense acquisition program cost, schedule, and performance changes for the December 2019 reporting period. This information is based on the comprehensive annual Selected Acquisition Reports (SARs) through the first quarter of FY 2020, as updated by the President’s Fiscal Year (FY) 2021 budget submitted to Congress on May 26, 2020.*

SARs summarize the latest estimates of cost, schedule, and performance status. These reports are prepared annually in conjunction with submission of the President's Budget. Subsequent quarterly exception reports are required only for those programs experiencing unit cost increases of at least 15 percent or schedule delays of at least six months. Quarterly SARs are also submitted for initial reports, final reports, and for programs that are rebaselined at major milestone decisions.
The total program acquisition cost estimates provided in the SARs include research and development, procurement, military construction, and acquisition-related operations and maintenance. These totals reflect actual costs to date as well as future anticipated costs. All estimates are shown in fully inflated then-year dollars.

The prior estimate of program acquisition costs for programs covered by SARs for the reporting period for December 2018 (87 programs) was $2,022,806 million. The current estimate for December 2019 (86 programs) is $2,020,299 million.

New SARs
DoD is submitting no new SARs for the December 2019 reporting period...."

Source: ... C_2019.PDF [attached below]
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