{"id":18374,"date":"2017-07-11T16:48:06","date_gmt":"2017-07-11T16:48:06","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/07\/11\/air-forces-lower-buy-rate-drives-27-5b-spike-in-f-35-acquisition-costs\/"},"modified":"2026-08-07T21:43:34","modified_gmt":"2026-08-07T21:43:34","slug":"air-forces-lower-buy-rate-drives-27-5b-spike-in-f-35-acquisition-costs","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/air\/2017\/07\/11\/air-forces-lower-buy-rate-drives-27-5b-spike-in-f-35-acquisition-costs\/","title":{"rendered":"Air Force\u2019s lower buy rate drives $27.5B spike in F-35 acquisition costs"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The Pentagon&#8217;s projected total cost for buying the F-35 shot up by $27.5 billion from 2015 to 2016, a spike mostly driven by slower-than-expected U.S. Air Force procurement, the program office announced.<br\/><br\/> According to the 2016 Selected Acquisition Report, or SAR, which was delivered to congressional lawmakers Monday, the estimated total acquisition cost of the F-35 program increased to $406.5 billion in then-year dollars that include inflation, up about 7 percent from last year&#8217;s estimate of $379 billion. <br\/><br\/> Critics can blame the augmented costs on the Air Force&#8217;s annual buy rate, which dropped from a planned maximum rate of 80 aircraft to a paltry 60 units per year. The Marine Corps added 13 F-35Bs to its planned program of record, but was unable to offset the increases driven by changes to the Air Force&#8217;s funding profile. \u00a0<br\/><br\/> The lower Air Force buy rate had a number of other effects to the F-35 program as a whole, Rear Adm. Mat Winter, the F-35 program executive officer, said in an emailed statement. <br\/><br\/> First, it will take the service six additional years to complete procuring its planned program of record, currently specified as 1,763 F-35A conventional takeoff and landing models.<br\/><br\/> The total program cost also increased by $27.5 billion in then-year dollars.\u00a0According to the Joint Program Office,\u00a0the total program cost\u00a0is the fighter&#8217;s operations and sustainment added to acquisition costs, which includes expenses incurred from F-35 development, procurement and military construction.<br\/><br\/>That figure now sits at $1.53 trillion, up from $1.50 trillion in last year&#8217;s SAR.<br\/><br\/><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Finally, it led to a &#8220;slight&#8221; increase in the cost per plane. For example, unit-recurring flyaway costs \u2014 which measure the average cost per plane over the life of the program \u2014 are currently estimated at $111.3 million per F-35A. The 2015 SAR put an &#8220;A&#8221; model at $100.6 million in then-year dollars.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Air Force officials have said the service&#8217;s smaller maximum buy rate is the reflection of fiscal realities, not its need for the F-35. At an Air Force Association event Tuesday morning, Air Combat Command head Gen. Mike Holmes reiterated the service&#8217;s plans to ramp up to 60 aircraft a year; although without congressional intervention it will procure only 46 A models in fiscal 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Sixty is what we think is financially attainable in the best-case world. We really should be buying 80 or 100, and if I was going to fix the average life of ACC&#8217;s aircraft, I&#8217;d like to buy about 150 fighters a year and about 20 or 25 [remotely piloted aircraft]. If I was going to buy the average service life down, that&#8217;s what it would take,&#8221; he said. &#8220;But in the world I&#8217;m in, with the budget I&#8217;ve had, I&#8217;d like to get to 60.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 2016 SAR documented a number of other changes to the F-35 program&#8217;s estimated costs.\u00a0Research, development, test and evaluation expenses &#8220;have remained steady&#8221; for the most part, Winter said. However, a reallocation of funding from procurement to RDT&#038;E was necessary to wrap up the program\u2019s development phase. That contributed to a slight hike from $55.1 billion in 2015 to $55.5 in the 2016 SAR.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The total estimated cost of military construction associated with the F-35 program stayed exactly the same from 2015 to 2016, at $4.8 billion in then-year dollars.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The program office noted that unit-recurring flyaway costs of the F-35B actually decreased when measured in base year 2012 dollars, which the JPO uses to show an apples-to-apples comparison without factoring in annual inflationary increases. In then-year dollars, &#8220;B&#8221; variants increased slightly from $122.9 million to $123.4 million per copy. When charted in base year 2012 dollars, the price dropped from $104.4 million to $103.7 million because of a larger Marine Corps program of record.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the Navy\u2019s carrier-launched F-35C also increased slightly, from $110.7 million to $112.4 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Projected operations and sustainment, or O&#038;S, costs increased by $35.3 billion due to the rising cost of fuel and changes to the F-35 bed-down plan, the JPO said. The program office currently estimates total O&#038;S costs at $1.06 trillion in then-year dollars.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Without these two updates, the F-35 estimated O&#038;S costs would have decreased by approximately $6.2B (base year 2012 dollars) from last year&#8217;s JPO estimate,&#8221; Winter said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Pentagon\u2019s projected total cost for buying the F-35 shot up by $27.5 billion from 2015 to 2016, a spike mostly driven by slower-than-expected Air Force procurement, the program office 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