Pentagon Estimates F-35 Concurrency Costs Total $1.41B

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Unread post24 Aug 2018, 11:39

Pentagon Estimates F-35 Concurrency Costs Total $1.41B
23 Aug 2018 Lee Hudson

"The Pentagon has notified Capitol Hill of an updated “concurrency” cost estimate for F-35 low rate initial production (LRIP) lots 1-12 that has declined by 2% compared with the previous year’s evaluation, to $1.41 billion, because of fewer “forecasted issues.”

With the completion of development testing, issues forecast to emerge from flight testing declined from $150 million in the 2017 cost estimate to $30 million in the 2018 prediction, Pentagon acquisition executive Ellen Lord writes in a July 5 Joint Strike Fighter concurrency cost report. The report complies with the 2012 Military Construction and Veterans Affairs and Related Agencies Appropriations Act. Aerospace DAILY viewed a copy of the report.

The Defense Department defines concurrency as an overlap in the development and production phases of an acquisition program. This requires modifications to early production lots because of deficiencies discovered during qualification, ground and flight tests, or because of new engineering analysis.

“Incorporation of concurrency design changes adds cost because of recurring engineering activities, production cut-in, and retrofit of existing aircraft,” the report says. “These costs do not include the nonrecurring engineering costs incurred to develop engineering solutions associated with these changes.”

Planned and scheduled block upgrades to each aircraft are handled separately and are not considered concurrency costs by the Pentagon. For any LRIP lot there are potentially three types of concurrency changes: items discovered before beginning production of the lot; changes during the period of performance of any given lot; and things discovered following delivery of the last aircraft in a given lot.

“Retrofit activities to incorporate changes into operational aircraft compose the major portion of concurrency costs,” the report reads. “Examples of retrofits that have been performed include the F-35B Auxiliary Air Inlet Door Assembly, the F-35B Fuselage Station 496 Bulkhead modification, and Forward Root Rib modification for the F-35A and F-35B.”

Meanwhile, so-called known concurrency issues, which make up the bulk of the total $1.41 billion concurrency estimate, increased by 7%, or $90 million, compared with last year’s estimate, for a total of $1.38 billion. A reason for the uptick in the estimate is because final cost estimates realized for known issues are higher than the initial estimates due to the engineering change proposal definitization process...." [MORE]

Source: ... total-141b
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Unread post24 Aug 2018, 17:18

That's not actually that much money, only a couple million per plane.


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Unread post24 Aug 2018, 17:33

Don't forget to balance that $1.4 Billion against the money saved by NOT having to keep every F-16, AV-8B, F-18C/D, etc flying for 10-15 more years while waiting for SDD to complete.
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