C-17 Program

Pursuant to a congressional request, GAO reviewed Air Force actions related to the C-17 contract to determine whether they were in violation of the Anti-Deficiency Act. GAO noted that: (1) although the contract originally listed separate ceiling prices for each segment of the contract, the Air Force and the contractor did not have a common understanding whether the separate ceiling prices or a single ceiling price for the entire contract would apply for final price redetermination; (2) the Air Force determined that a contract modification was necessary to facilitate contact administration and avoid future disputes; and (3) contract modification, use of expired procurement appropriations, and reprogramming of C-17 research, development, test, and evaluation funds did not increase or decrease the total dollars applied to the contract.