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To:
The
Hon Robert Gates
US
Secretary of Defense
For
information:
Mr
Michael Sullivan, GAO
Dear
Mr
Gates,
As an Aerospace T&E
professional with over 25
years experience in flight test and innovative engineering design, my
belief
system embraces a fundamental tenet – the provision of innovative, cost
effective solutions to meet the capability needs of those who fly to
defend. In short, I believe it is my duty
to
seek out what a predecessor of yours, the Hon Charles E Wilson, summed
up when
he coined the term, “More bang for the buck”.
Having studied
and analysed the F-22A Raptor and F-35 JSF programs for a number of
years,
I and my colleagues have concluded and verily believe the F-22A Raptor
Program
represents far more ‘bang for the buck’.
The most recent evidence of this
may be seen in the
latest GAO Report on Defense Procurement (GAO-09-326SP). While reading this report, Charlie
Wilson’s words resonate clearly and loudly in these works.
I
offer
the following two data sets and eight observations in support of this
conclusion.
JSF Program
Performance (fiscal year 2009 dollars in millions)
|
As of 10/2001
|
Latest 09/2008
|
Percent change
|
Research and development cost |
$37,645.7 |
$46,840.8 |
24.4 |
Procurement cost |
$167,016.3 |
$197,437.3 |
18.2 |
Total program cost |
$206,410.3 |
$244,772.1
|
18.6 |
Program unit cost |
$72.020 |
$99.663 |
38.4 |
Total quantities |
2,866 |
2,456 |
-14.3 |
Acquisition cycle time (months)
|
175 |
125 |
-28.6 |
JSF Program
Data Sheet, Page 93 GAO-09-326SP
Assessments
of Major Weapon Programs
F-22 Upgrade
Program Performance (fiscal year 2009 dollars in millions)
|
As of 03/2003
|
Latest 08/2008
|
Percent change
|
Research and development cost |
$3,101.2 |
$4,265.1 |
37.5 |
Procurement cost |
$537.4 |
$1,655.7 |
208.1 |
Total program cost |
$3,638.6 |
$5,920.8 |
62.7 |
Program unit cost |
NA |
NA |
NA |
Total quantities |
NA |
NA |
NA |
Acquisition cycle time
(months) |
109 |
145 |
33.0 |
F-22A
Modernization Program Data Sheet, Page 79 GAO-09-326SP
Assessments of Major Weapon Programs
1.
Though
media releases and press reports are claiming the Procurement Cost for
the F-22
Modernization Program has “increased
by a massive
208.1 per cent”, quoting percentages can be deceiving. This percentage figure equates to
$1,118.3 million. Similarly, the
Total Program Cost increase of 62.7 per cent equates to $2,282.2
million.
2.
The
comparable figures for the JSF Program are (a) Procurement Cost – 18.2%
representing $30,421.0 million and (b) Total Program Cost – 18.6%
representing $38,361.8 million. Both are
well over an order of magnitude more than
the increases
reported in the F-22 Program.
3. The
Spiral Upgrade Modernisation Program provides the F-22A Raptor with an
expanded
air to ground capability which many experts say, based on the data, is
greater
than the capability planned for the JSF, particularly in relation to
the metrics
of ‘throw weight’, ‘stand off range’,
‘penetration’, ‘kill box interdiction/persistent bombardment
capability’ and the all important ‘weapon’s
effectiveness’. Some may
argue this is incorrect but since the JSF has yet to drop a weapon or
fire a
missile or a gun, such arguments are, at best, premature.
4. Put
simply, the cost increases that have occurred in the F-22A
Modernisation
Program, respectively, represent (a) RDTE – 12.7% and (b) Procurement
– 3.7% and (c) Total Program – 5.9% of the increases in the same
elements of the JSF Program up to August 2008.
5.
This
goes part of the way to explain why the JSF budget increases are such a
large
proportion of the $296 billion cumulative cost growth over the ninety
six
defence procurement programs cited in the GAO Report.
6. Another
way to look at this situation is by comparing the Total Costs
for each
element of the F-22A Modernisation Program with the increases in
cost of
the same elements of the JSF Program.
Program Element |
Cost Increases in JSF Program to August 2008
|
F-22A Upgrade Total Costs |
F-22A Upgrade Total Costs as a percentage of JSF Cost
Increases to August 2008 |
RDT&E |
$9,195.1 |
$4,265.1 |
46.4% |
Procurement Cost |
$30,421.0 |
$1,655.7 |
5.4% |
Total Program Cost |
$38,361.8
|
$5,920.8 |
15.4% |
7.
Therefore,
the USAF is getting the expanded air to ground capability F-22A Raptor
for a
cost that is less than one sixth (~15.4%) of the increases
in the
budget, up to August 2008, of the JSF Program.
8.
Looking
into the not-too-distant future of 2010, when the latest round of
predictions of cost increases in the JSF
Program will have materialised,
this figure is likely to be in the single digits, percentage wise. However, if ‘more bang for the
buck’ is the aim and the self evident, albeit hard, decisions are made,
the real savings will be in the high multiples of tens of billions if
not over
one hundred billion dollars.
I
hope
these observations are well received and useful in helping to determine
how to
provide what is best for those who fly to defend; particularly since a total
indifference
to reality has brought Charlie Wilson’s ‘more bang
for the buck’ into such stark relief.
For all
addressees:
In
the
interests of our Nations, any assistance you can provide in ensuring
this eMail
reaches the principal addressees would be greatly appreciated.
Yours
sincerely,
Peter Goon
Peter
Goon
Principal
Consultant/Advisor
Head
of Test and Evaluation
Co-Founder,
Air
Power Australia
Peter
Goon and Associates
Phone: +61 (0)8 8362 1585
Mob: +61 (0)41 980 6476
Monday, 6 April 2009
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$494 million delta between Total
Program
cost and the sum of constituent parts - RDTE and Procurement Cost
Variance between individual figures
and totals stem from source data.
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