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National Defense: Cost Projections for the B-1B Bomber Program

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Report Type Reports and Testimonies
Report Date Nov. 27, 1984
Report No. NSIAD-85-15
Subject
Summary:

Pursuant to a congressional request, GAO reviewed the Department of Defense report on B-1B cost projections that was made pursuant to the 1984 Department of Defense Authorization Act. GAO was also requested to submit periodic reports concerning the status of the B-1B program based on its review of contractor proposals and/or negotiated multiyear contracts.

In July 1984, the Air Force awarded a $1.6 billion multiyear contract for the production of 428 B-1B engines, which was about $352 million less than the Air Force's 1983 budget estimate. B-1B program officials stated that, although the contract was negotiated for less than the estimate, the funds were not excess. Program officials also noted that funding requirements could not be accurately measured because 82 percent of the value of the program's efforts were yet to be procured. GAO plans no further review work on the program until after the Air Force completes all multiyear contract negotiations.

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