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F-35 JOINT STRIKE FIGHTER(April 17, 2013)

Program Performance Has Improved in Some Areas,
but Affordability Challenges and Other Risks
Remain

What GAO Found
The new F-35 acquisition baseline reflects positive restructuring actions taken by
the Department of Defense (DOD) since 2010, including more time and funding
for development and deferred procurement of more than 400 aircraft to future
years. Overall, the program progressed on several fronts during 2012 to further
improve the current outlook. The program achieved 7 of 10 key management
objectives and made substantial progress on one other. Two objectives on
aircraft deliveries and a corrective management plan were not met. The F-35
development test program substantially met expectations with some revisions to
flight test plans and made considerable progress addressing key technical risks.
Software management practices and some output measures improved, although
deliveries to test continued to lag behind plans. Manufacturing and supply
processes also improved—indicators such as factory throughput, labor efficiency,
and quality measures were positive. While initial F-35 production overran target
costs and delivered aircraft late, the latest data shows labor hours decreasing
and deliveries accelerating.
The F-35 program still faces considerable challenges and risks. Ensuring that the
F-35 is affordable and can be bought in the quantities and time required by the
warfighter will be a paramount concern to the Congress, DOD, and international
partners. With more austere budgets looming, F-35 acquisition funding
requirements average $12.6 billion annually through 2037 (see below). Once
fielded, the projected costs of sustaining the F-35 fleet have been deemed
unaffordable by DOD officials; efforts to reduce these costs are underway.
Software integration and test will be challenging as many complex tasks remain
to enable full warfighting capability. The program is also incurring substantial
costs for rework–currently projected at $1.7 billion over 10 years of production–to
fix problems discovered during testing. With two-thirds of development testing
still to go, additional changes to design and manufacturing are likely. The
program continues to incur financial risk from its plan to procure 289 aircraft for
$57.8 billion before completing development flight testing.

Why GAO Did This Study

The F-35 Lightning II, the Joint Strike
Fighter, is DOD’s most costly and
ambitious aircraft acquisition. The
program is developing and fielding
three aircraft variants for the Air Force,
Navy, Marine Corps, and eight
international partners. The F-35 is
critical to long-term recapitalization
plans as it is intended to replace
hundreds of existing aircraft. This will
require a long-term sustained funding
commitment. Total U.S. investment is
nearing $400 billion to develop and
procure 2,457 aircraft through 2037.
Fifty-two aircraft have been delivered
through 2012. The F-35 program has
been extensively restructured over the
last 3 years to address prior cost,
schedule, and performance problems.
DOD approved a new acquisition
program baseline in March 2012.
GAO’s prior reviews of the F-35 made
numerous recommendations to
improve outcomes, such as increasing
test resources and reducing annual
procurement quantities.