{"id":136684,"date":"2018-03-08T22:26:16","date_gmt":"2018-03-08T22:26:16","guid":{"rendered":"https:\/\/one.sightlinemg.com\/militarytimes\/uncategorized\/2018\/03\/08\/new-f-35-modernization-plan-could-come-with-hefty-16b-price-tag\/"},"modified":"2026-08-08T00:23:45","modified_gmt":"2026-08-08T00:23:45","slug":"new-f-35-modernization-plan-could-come-with-hefty-16b-price-tag","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/militarytimes\/news\/your-military\/2018\/03\/08\/new-f-35-modernization-plan-could-come-with-hefty-16b-price-tag\/","title":{"rendered":"New F-35 modernization plan could come with hefty $16B price tag"},"content":{"rendered":"\n

WASHINGTON \u2014 Under the F-35 joint program office\u2019s latest plan, f<\/a>ollow-on modernization for the Joint Strike Fighter<\/a> could add up to a total of $16 billion, the Defense Department\u2019s program head confirmed Wednesday. <\/p>\n\n\n\n

Responding to questions from lawmakers about the price of implementing the new Continuous Capability Development and Delivery strategy<\/a>, or C2D2, Vice Adm. Mat Winter acknowledged that U.S. and international customers could pay up to $10.8 billion for development and $5.4 billion for procurement of upgrades to the F-35 between fiscal years 2018 through 2024. <\/p>\n\n\n\n

Last September at the Defense News conference, Winter announced that the JPO had re-envisioned the F-35\u2019s follow on-modernization plan, also known as Block 4, as a more iterative process where software updates would be pumped out every six months. New computing systems, sensors and weapons would also be incorporated during the period. <\/p>\n\n\n\n

Out of the 53 capabilities that will be introduced during C2D2, about 80 percent are software-related, Winter said<\/a> during a hearing on the program held by the House Armed Services Committee\u2019s tactical air and land forces subcommittee.<\/p>\n\n\n\n

\u201cIt\u2019s predominantly software, which is what drove us to pursue an agile, repetitive, iterative process to do quick software module updates and provide them to the warfighter,\u201d he said.<\/p>\n\n\n\n

\u201cI realize that this is not traditional, and what we need to do is provide the sense of confidence for the goalpost that we can operate between, and bring that to you.\u201d<\/p>\n\n\n\n

Because the U.S. share of development costs amounts to $7.2 billion, the United States could be left with a bill of about about $1 billion a year over that seven year period before procurement costs are factored in. Winter said that is \u201con par for post-development\u201d costs for an upgrade program of this size.<\/p>\n\n\n\n

\u201cThat estimate will most likely come down, most likely,\u201d he told reporters after the hearing. \u201cBut I don\u2019t guarantee anything.\u201d<\/p>\n\n\n\n

The $5.4 billion procurement cost also represents the \u201cworst case,\u201d where the U.S. services decide to push all Block 4 hardware upgrades toward the end of the modernization timeline. <\/p>\n\n\n\n

\u201cIf I have all of the hardware updates in the first year, it would be less procurement cost\u201d because the new aircraft would come off the production line with all of the new systems already built in, he said. If the services decide to do the hardware upgrades closer to 2024, more aircraft will have to be retrofit.<\/p>\n\n\n\n

\u201cThat also assumes that the United States services wants every one of their airplanes \u2014 every one \u2014 upgraded to Block 4,\u201d he said. \u201cThere will be a decision to be made, should those stay at block 3 or not? And then United States services will make that decision.\u201d<\/p>\n\n\n\n

Congressional criticism<\/b><\/p>\n\n\n\n

Throughout the hearing, the subcommittee\u2019s top two members \u2014 its chairman Rep. Mike Turner, R-Ohio, and ranking member Rep. Niki Tsongas, D-Mass. \u2014 hammered the JPO over a report to Congress which lawmakers said did not include the requested information about Block 4, such as a detailed cost estimate for the modernization plan. <\/p>\n\n\n\n

Turner said the report \u201cprovides only initial insight\u201d into the cost of follow-on modernization, \u201cwhich of course reduces our overall confidence that the Department of Defense actually knows the answer to the question.\u201d<\/p>\n\n\n\n

Tsongas criticized the initial estimates provided to the committee as \u201can astonishingly high amount\u201d that \u201cas far as I\u2019m aware greatly exceeds any cost figures previously provided to Congress.\u201d<\/p>\n\n\n\n

At first glance, the $16 billion figure cited by Tsongas appears to be significantly higher than previous estimates, although it\u2019s not an apples-to-apples comparison with past numbers. <\/p>\n\n\n\n

In 2017, the Government Accountability Office predicted that the development phase of the Block 4 modernization effort would cost upwards of $3.9 billion, but that figure only included up to FY22 and did not include procurement costs.<\/p>\n\n\n\n

Winter acknowledged that the data presented to Congress was only \u201cpreliminary information,\u201d that included an initial cost estimate, schedule and test plan. However, Defense Department leadership \u2014 to include Ellen Lord, its top acquisition official \u2014 will not formally sign off and certify the final acquisition strategy until Winter meets with the defense acquisition board this June.<\/p>\n\n\n\n

Although the House and Senate armed services committees have remained broadly supportive of the F-35 program, lawmakers have criticized the Block 4 program \u2014 and now the C2D2 effort \u2014 for what is seen as a lack of oversight.<\/p>\n\n\n\n

Some members have contended that F-35 modernization should be managed as a separate program of record, as its costs amount to more than many major defense programs. However, the JPO has sharply opposed those efforts, arguing that splitting the program could actually drive up the price.<\/p>\n\n\n\n

Asked by Tsongas about his thoughts on the C2D2 effort, the Marine Corps\u2019 deputy commandant for aviation soundly a cautiously optimistic note.<\/p>\n\n\n\n

\u201cI think none of the services has a true comfort level until we get the cost of how this is going to happen scoped out,\u201d Lt. Gen. Steven Rudder said. <\/p>\n\n\n\n

However, he noted that the C2D2 approach could enable the jet to be more adaptable to threats.<\/p>\n\n\n\n

\u201cOne thing about the C2D2 I think that sometimes gets clouded is how rapidly the threat and the pace of technological developments that [adversaries] are progressing at,\u201d he said. \u201cThere will be some budget decisions that have to be made. If the scope of the work comes in at the level that is proposed … we are going to be able to handle that.<\/p>\n\n\n\n

Lt. Gen. Jerry Harris, the Air Force\u2019s deputy chief of staff for plans, programs and requirements, said the service intends to fully fund the program, but is looking for ways to reduce cost.<\/p>\n","protected":false},"excerpt":{"rendered":"

The effort could rack up a price tag of up to $10.8 billion for development and $5.4 billion for procurement of upgrades to the F-35 between fiscal years 2018 through 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