C-17 Aircraft

Cost and Performance Issues Gao ID: NSIAD-95-26 January 26, 1995

The widebodied C-17 cargo plane was intended to carry out a variety of unique missions, such as delivering cargo and troops to battlefront airfields; landing in small, austere airfields during conflicts; airlifting outsize cargo, such as tanks; and performing air drops. GAO assessed the C-17's original justification and the effect of technical problems and cost increases on the aircraft's ability to achieve original program requirements. Changes in the intended role of the C-17, soaring program costs, and the results of the Defense Department's own analysis lead GAO to conclude that a fleet of 120 C-17 aircraft is not the most effective way to meet the Air Force's airlift needs. A fleet of 40 C-17s and 64 commercial freighters could meet the Defense Department's airlift requirements, as expressed in the Mobility Requirements Study, at a cost savings of upwards of $10 billion when compared to a fleet of 120 C-17s.

GAO found that: (1) although the C-17 was intended to operate routinely in an intratheater shuttle role, perform direct delivery missions to forward airfields, airlift substantial amounts of outsize cargo, provide low-level parachute extractions, and perform strategic airdrops, it has not been able to meet its original operational requirements and will not be used as intended; (2) DOD concluded that the C-17 fleet was its preferred choice for meeting its military airlift requirements because of significant utilization and delivery advantages; (3) recent DOD cost and operational effectiveness analyses showed that a mixed fleet comprised of 40 C-17 aircraft and 64 commercial freighters could be more effective and procured at cost savings of at least $10.7 billion when compared to a fleet of 120 C-17 aircraft; and (4) the 120 C-17 fleet is not the most cost-effective way to meet intratheater military airlift requirements.

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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