Potential for Reducing Costs by Using More JT3D Engines in the KC-135 Reengining Program

Gao ID: NSIAD-83-47 September 23, 1983

GAO reviewed two Air Force KC-135 reengining programs to determine whether the Air Force selected the more cost effective mix of the programs which it undertook to fulfill its needs for additional aerial-refueling capability for KC-135 airplanes.

One KC-135 reengining program uses new, current-technology CFM56 engines to replace J57 engines on KC-135 airplanes while the other uses JT3D engines from used Boeing 707 series airplanes. GAO found that the Air Force did not use appropriate methodology to determine which engine was the more cost effective. By properly discounting costs for alternative mixes of JT3D- and CFM56-equipped KC-135's, GAO estimates that the Air Force would save about $283 million of life-cycle costs totaling about $28 billion. GAO suggests that the Air Force reengine more KC-135's with JT3D engines. GAO noted that a KC-135 fleet mix that includes 200 KC-135 reengined aircraft provides the same capability as the Air Force's planned mix that includes 88 KC-135 reengined aircraft. While neither mix may meet the Air Force's forecasts of future tanker aircraft requirements, GAO believes that the uncertainties warrant expanding the JT3D program to achieve the life-cycle cost savings.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Henry W. Connor Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 275-4141


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