{"id":21477,"date":"2016-03-14T20:52:53","date_gmt":"2016-03-14T20:52:53","guid":{"rendered":"https:\/\/one.sightlinemg.com\/airforcetimes\/uncategorized\/2016\/03\/14\/air-force-paying-too-much-for-c-17-engine-maintenance-report-says\/"},"modified":"2026-08-07T20:38:29","modified_gmt":"2026-08-07T20:38:29","slug":"air-force-paying-too-much-for-c-17-engine-maintenance-report-says","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/airforcetimes\/news\/your-air-force\/2016\/03\/14\/air-force-paying-too-much-for-c-17-engine-maintenance-report-says\/","title":{"rendered":"Air Force paying too much for C-17 engine maintenance, report says"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The Air Force is paying for engine maintenance for the C-17 Globemaster III without any idea if it&#8217;s getting a fair price, a new watchdog report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Air Force officials awarded the\u2026base contract without obtaining sufficient data to determine whether the Air Force purchased the F117 engine sustainment services provided by Pratt &#038; Whitney at fair and reasonable prices,&#8221; said the investigation by the Pentagon&#8217;s Office of the Inspector General.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exact amount the Air Force paid for the sole-source contract between fiscal 2012 and 2014 is redacted, but the IG&#8217;s report says that it&#8217;s in the billions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The F117 engine is a military version of the Pratt &#038; Whitney PW2000 engine used to power Boeing 757 aircraft. The Air Force currently has 1,200 of the engines for 222 C-17s, the IG said. Each plane flies on four of the engines.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investigators said the Air Force didn&#8217;t do its due diligence before handing the defense contractor money for the Globemaster III Integrated Sustainment Program (GISP).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Pratt &#038; Whitney declined to provide critical cost and pricing information that the Air Force needed to determine fair and reasonable prices,&#8221; the IG&#8217;s report said. &#8220;Without sufficient supporting information, the Air Force relied on a questionable analysis of Pratt &#038; Whitney&#8217;s proposed F117 engine sustainment prices and declared the GISP contract prices fair and reasonable.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What sort of &#8220;questionable analysis&#8221; the Air Force did is redacted in the report, but the IG said this isn&#8217;t a new problem.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;For over 10 years, the Air Force has been ineffective at obtaining insight into its F117 engine sustainment requirements and prices,&#8221; the report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a letter dated Nov. 2015, then-acting assistant secretary of the Air Force for acquisitions, Richard Lombardi, responded to the report, but what actions he said he would take are redacted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IG&#8217;s office responded that his statements &#8220;did not address the specifics of the recommendation,&#8221; and that the Air Force still needed to establish a &#8220;performance and cost baseline for the F117 engine sustainment.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The original contract was structured to encourage Pratt &#038; Whitney to cut down on maintenance hours and expenses, but investigators said Air Force contracting officials never re-evaluated the agreement to see if the cost could be reduced.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sole-source contracting comes with a risk that &#8220;the contractor could overcharge the government in the absence of competition,&#8221; the IG said. In that case, collecting cost data from the contractor, evaluating it, and comparing it to other companies becomes even more important, investigators said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But he defense contractor still has not provided a complete accounting of the costs of engine maintenance, the IG said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In an earlier audit, investigators &#8220;requested data related to sustainment services\u2026however, Pratt &#038; Whitney did not provide requested cost data&#8221; due to concerns that the Air Force would use it in pending contract negotiations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inspectors ended up subpoenaing the company for the information, and said in the report that they &#8220;have received multiple installments of portions of the requested F117 engine sustainment information.&#8221; The IG said they&#8217;ll publish another report once they&#8217;ve finished analyzing all the cost data.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a statement\u00a0emailed to Air Force Times Pratt &#038;\u00a0Whitney said it has &#8220;spent many months and significant resources cooperating with the DOD IG&#8217;s recent audits,&#8221; including providing\u00a052,000 pages containing\u00a0\u00a0&#8220;detailed cost data, and highly proprietary partner and supplier agreements to prove our customers have received fair and reasonable prices for F117 maintenance.&#8221; \u00a0Pratt &#038; Whitney says it also &#8220;essentially designed a new accounting system to provide the IG data in the requested format, including a level of granularity unheard of in commercial aviation.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Air Force Times has also reached out to the Air Force Contracting office, and the Inspector General, and will update this report as more information becomes available.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The C-17 Globemaster III is a cargo and personnel transport that can carry 102 troops or 170,900 lbs. of cargo, according to Air Force fact sheets. It first entered service in 1993.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The F117 listed in the report is the designation of the engine produced by Pratt &#038; Whitney, and should not be confused with the F-117 Nighthawk, the Air Force&#8217;s first dedicated stealth fighter that was retired in 2008.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Phillip Swarts is the aircraft and space reporter for Air Force Times. You can reach him at\u00a0<\/em><a href=\"mailto:pswarts@airforcetimes.com?subject=C-17%20Engine%20Maintenance%20Article\">pswarts@airforcetimes.com<\/a>\u00a0<em>and follow him on Twitter at <a href=\"https:\/\/twitter.com\/PFSwarts\">@<\/a><\/em><a href=\"https:\/\/twitter.com\/PFSwarts\">PFSwarts<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Air Force is paying billions for engine maintenance for the C-17 Globemaster III without any idea if it\u2019s getting a fair price, a new watchdog report 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