JSF costs levelling

by: Matthew Potter
April 10, 2008

Category: development program, Federal Budget Process, Lockheed Martin, Military Aviation, U.S. Air Force, U.S. Navy | RSS 2.0

On Monday the Pentagon released the annual Selected Acquisition Reports (SAR) this is a formalized report that goes to Congress that details the performance of Acquisition Category (ACAT) ID and IC programs. Congress and OSD can also add programs to the list that don’t meet the ACAT I categories. See the press release here. In a related move the USAF and Lockheed Martin released an audit of the JSF program that shows that cost growth is leveling off. See that story here. This means that the unit price of the aircraft is not increasing that rapidly. This is one of the key metrics that Congress uses to track programs performance. If you take the total estimated cost of the program’s development and production and divide by the number of units procured you get an Average Unit Procurement Cost. If there is an increase in one year of 15% or more this causes a breach and requires all sorts of reports and actions by the service and DoD. If it is more than 25% the program has to be halted until OSD and Congress figure out what to do.

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