Navy Aviation

AV-8B Harrier Remanufacture Strategy Is Not the Most Cost-Effective Option Gao ID: NSIAD-96-49 February 27, 1996

The Navy could save millions per aircraft by buying new AV-8B Harrier fighters equipped with night attack and radar capabilities instead of disassembling and retrofitting older Harriers with the desired technology. The Navy estimates that each remanufactured AV-8B aircraft could cost as much as $29.5 million. Such aircraft are made up largely of used and refurbished components. GAO calculates that the Marines can buy new radar model AV-8Bs for about $23.6 million per aircraft. Because the program is conducted under an annual contract, the Navy can change its procurement strategy and begin immediate negotiations to buy new radar models rather than continuing to rebuild the aircraft. The first aircraft rebuilt at the Naval Aviation Depot in Cherry Point, North Carolina, took almost twice as long to disassemble as planned. Delays have also arisen from the inability of McDonnell Douglas and depot vendors to provide components promptly. In addition, the radars to be used in the Harriers are not going to be available as originally planned.

GAO found that the: (1) Navy estimates that it would cost between $23 million and $29.5 million to rebuild each AV-8B aircraft using refurbished parts; (2) Marines could procure new AV-8B radar attack aircraft for about $23.6 million each; (3) Navy does not have the ability to rebuild AV-8B aircraft as quickly as new aircraft can be produced; (4) Navy could revise its procurement strategy to procure new radar aircraft, since the remanufacture program is conducted under single-year contracts; (5) Navy is having difficulty disassembling older aircraft and acquiring replacement components in a timely and cost-effective manner; and (6) surplus radar equipment intended for use in rebuilding the aircraft may not be available as soon as anticipated, which could cause delays in the remanufacture program.

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