quicksilver wrote:The point is, if we accept the idea (spin) that E/F URF is ~50M, that means the 'additional' costs (call em what you want) are another ~200% of the URF for a type that they already have in operational service (and has been in MYP for the US customer...a heck of a deal for Oz, eh?).
By comparison, if we accept a ~90M URF for F-35A in 2015, 'additional' costs are roughly anothr 46% of the URF -- for a new jet just being introduced into service where those kinds of costs are typically higher. Go to 2017 and F-35A drops by ~11M/jet but the 'additional' costs remain constant as a percentage of URF. By 2019, F-35A URF decreases another 8M per jet but the 'additional' costs are only another 24% of the URF. And these numbers don't consider the URF reductions that come with the international buys that ramp up during that period. (see SAR 2011)
So, are E/F support costs an additional 200% on top of procurement or is the real E/F URF being significantly understated? Take your pick.
The $50m Unit Reoccurring Cost is the cost of the materials + labor for one aircraft, as per a Boeing Offer for an Extended MYP purchase to the US Navy.
e.g If the DoD/USN buy between 48 and 60 jets combined (Navy SH, Navy G, RAAF FMS) we'll be able to reduce costs to $Y dollars.
One possibility is the USN allow the RAAF to buy the jets already in MYP, in order to accommodate the current Sequestration SNAFU, without penalty or cost to the DoD.
As for the F-35A $90m UFC, I still think that is doable, but the future WSUC is always distorted depending on what side of the debate you're on. F-22 program is a classic example of the cost of planned spiral upgrades, making the jets seem insanely expensive on paper ($350m+ each) when in reality, each aircraft still cost ~ $200m UFC, and increase of ~40% not quadrupled like some people claim.
In FMS purchases, its a total package, which is not always proportional to the cost of the jet itself. If the RAAF want 50 AN/ASQ-228s and 500 AGM-74 SLAM-ER missiles and 2000 JDAMs for Australia's defense, then so be it, but Congressional approval is needed, via the FMS package orders. Remember that FMS packages are not binding orders, and they often put things like "up to 2000 JDAMs" but then reduce the numbers in the actual sale.