Summary: Pursuant to a congressional request, GAO reviewed the Navy's projected requirements and cost estimates for the A-12 aircraft program.
GAO found that: (1) the Navy's projected requirements and cost estimates for A-12 aircraft changed considerably between December 1989 and April 1990; (2) the Navy's decision to lower the number of aircraft carriers reduced A-12 total cost, but increased the projected unit cost; (3) in December 1989, the Navy reported a need for 858 A-12 aircraft to support 15 aircraft carriers with 15 carrier wings; (4) in April 1990, the Secretary of Defense reduced the number of aircraft carriers to no more than 14 and reduced A-12 requirements to 620 aircraft, with further reductions a possibility due to anticipated budgetary constraints; (5) increased A-12 capability, survivability, reliability, and maintainability could allow the Navy to accomplish the current medium attack mission with fewer aircraft; (6) Navy plans to use S-3 aircraft for refuelling could be limited by a shortage of that aircraft, but the shifting of the refuelling mission could reduce overall A-12 requirements; (7) the Navy's A-12 total program cost estimates did not include operation and support costs or the cost of developing and incorporating certain improvements to enhance A-12 performance; and (8) the Navy did not adequately consider such cost projection variables as the effect of noncompetitive renegotiation on guaranteed prices, the delay of the Air Force's participation in the program, and the increase in A-12 weight and other developmental difficulties.
