1993 Air Force Budget

The Air Force's fiscal year 1993 budget request for spare parts for the C-17 military transport plane--totaling more than $179 million--is unneeded because (1) program cuts and schedule delays have significantly changed initial spare parts requirements, (2) the Douglas Aircraft Company already has enough spare parts on hand to fill orders for at least two years, and (3) other available funding for C-17 spare parts should cover any very long lead time spares needed before fiscal year 1994 funding is available. Further, the Air Force is canceling purchase orders for C-17 initial spare parts because of the change in program quantities and delayed production deliveries. It is also canceling funds for those purchases. These funds were part of the fiscal year 1990 aircraft procurement appropriation and may no longer be needed.

GAO found that: (1) the contractor has enough spares to support all operating C-17 aircraft for the program's first 2 years; (2) the Air Force has cancelled some initial spare parts orders, and has deobligated $35.2 million of its fiscal year (FY) 1990 appropriation, which it plans to use for other purposes; (3) additional funding for spares is not needed until FY 1994; and (4) although the Air Force already has FY 1992 funding for quick engine change kits, it would like to use FY 1993 initial spares funding for additional engine modules and kits, but it cannot quantify the needed number of items or establish their need date.

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.

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