An analyis of DCP Project AIR 6000's cost to date of acquiring "up to 100 Joint Strike Fightets" -- is the project running under budget?----
" ...
The Pentagon’s estimated cost to develop and purchase Lockheed Martin Corp.’s F-35 jet, the costliest U.S. weapons program, has stabilized for now, according to a new report to Congress. ... // ... Within the total -- which includes research, development and initial support such as spare parts and military construction -- the estimated cost to procure 2,456 U.S. aircraft has ticked down to $345.4 billion from $346.1 billion, or a 0.2 percent decline. ..." -
Pentagonhttps://www.bloomberg.com/news/articles ... ntagon-sayviewtopic.php?p=390695#p390695----
Using these 2018 USD Pentagon total projected program cost figures we can reasonably calculate a
2018 AUD eqivalent average expected AIR 6000 program cost, and an averaged individual jet cost (even when conservatively ignoring significant differences in cost between A, B and C, with F-35A being much cheaper), thus the equivalent figures look like this:
Averaged USA program jet cost (USD):
2456 F-35 @ $345.4 Billion = $140,635,179 ... average cost per F-35
Converted to
AUD the average F-35 cost per:
$140,635,179 per F-35 / 0.785 AUD exchange rate =
$179,153,094 AUD ... average cost per F-35, in March 14, 2018 dollar terms
Total equivalent cost of 72 x F-35 (AUD):
$179,153,094 AUD x 72 =
$12.899 billion AUD ... (March 14th 2018 dollars)
Total equivalent cost of 100 x F-35 (AUD):
$179,153,094 AUD x 100 =
$17.915 billion AUD ... (March 14,
2018 dollars)
DCP AIR 6000 budget in 2006 was (from DCP 2006 - 2016 project AIR 6000 text 2006 $AUD):
----
"Planned Schedule Highlights
Year-of-Decision Phase 2A/2B – FY 2008/09 to 2010/11
Phase 2C – FY 2014/15 to 2016/17
In-service Delivery Phase 2A/2B – 2012 to 2014 Phase 2C – 2018 to 2020
Estimated Phase Expenditure
Phase 2A/2B – $4500m to $6000m for each of Phases 2A and 2B Phase 2C – $2500m to $3500m ... "https://www.google.com.au/url?q=http:// ... xW_ESB4Sq9----
So the AIR 6000 budget in 2006 was up to
$15.5 billion AUD (2006 year dollars).
So the current program equivalent average cost in March 2018 dollars (AUD), for 72 x F-35, is still
$2.51 billion AUD below the 2006 dollars (AUD) AIR 6000 budget. And given the large difference in year-dollars purchasing power (due inflation), this cost falls
FAR BELOW the 2006 DCP allocated budgeted cost of AIR 6000. Plus we're buying the much cheaper F-35A, not the averaged cost of all three F-35 models, so the actual equivalent total capabilty cost will be even FAR LOWER again.
CONCLUSIONS
The ADF's AIR 6000 program is late but running well under the allocated program budget, especially when 2006 dollar budget is converted to 2018 dollars, and the 'A' model's lower cost is factored in.
Thus there are sufficient funds remaining to proceed with the purchase of a further 28 x F-35A, as per identified requirement for "
up to 100" new "Joint Strike Fighters".
The critics of the RAAF F-35A procurement have proven to be completely incorrect, so far, in all areas, except the time needed to aquire the capability, into IOC, in Australia.
There is no reason
on a basis of cost to not proceed with full proposed aquisition of up to
100 Joint Strike Fighters.
06 Mar 2018, 18:13
