Summary: Despite continuing cost escalations and delivery schedule slippages for the C-17, the Air Force remains a strong supporter of the program, raising concerns that it may be unwilling or unable to objectively evaluate the transport aircraft's progress and shortcomings. The Air Force and the contractor--McDonnell Douglas Corp.--consistently have been too optimistic in their cost and schedule estimates and now have obligated more than $1 billion on undefinitized contracts for future aircraft without having a legally enforceable delivery schedule. The completion of the flight test program has slipped to January 1995 due to a variety of problems, including poor flight efficiency, low flight rates, and late delivery of flight test aircraft. GAO estimates, however, that the flight tests will not be completed before July 1995. Moreover, several serious technical problems have surfaced over the past year or so, including range and payload deficiencies, a major wing failure in static testing, the need to redesign the flaps and slats using new materials, and problems with the landing gear. GAO expects that other technical problems will be found, potentially boosting program costs and further delaying the schedule. Overall, GAO is very concerned about the affordability of the C-17 and whether proper consideration has been given to alternatives that could offer an adequate airlift capability at less cost to the taxpayer.
