Summary: GAO conducted a review to examine the potential usefulness and progress of the Advanced Medium Range Air-to-Air Missile (AMRAAM) System, which the Air Force and the Navy are developing.
GAO found that AMRAAM might go into production without adequate assurance that it will be operationally effective. If all goes as planned, the Air Force will exercise several priced production options while some initial operational testing and evaluation is still going on. However, the risks involved in committing resources before completing testing may be greater than the Air Force currently envisions due to potential delays in development and testing schedules. If such delays occur, the Air Force will have inadequate information on the expiration dates for the production options. In addition, GAO found that the program's estimated cost has more than tripled since concept validation began 4 years ago, it does not include all costs, and there is some uncertainty associated with certain cost elements. If costs are not controlled, potential cost increases could affect the procurement rate, inventory levels, and the overall combat effectiveness of the program. Finally, GAO found that the Air Force's cost-effectiveness study excluded some significant costs and did not consider recent cost increases.
