(Luft) Lockheed Martin F-35 - Lightning II

[Quintus Fabius]

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Report to Congressional Committees
April 2015 GAO-15-364 United States Government Accountability Office

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GAO’s prior work has found that the program has experienced significant cost, schedule, and performance problems.

In 2009, Congress mandated that GAO review the F-35 acquisition program annually for 6 years. This report, GAO's sixth, assesses the program's (1) development and testing progress, (2) cost and affordability, and (3) manufacturing and supply chain performance.

The F-35 Joint Strike Fighter program had to make unexpected changes to its development and test plans over the last year, largely in response to a structural failure on a durability test aircraft, an engine failure, and software challenges. At the same time, engine reliability is poor and has a long way to go to meet program goals. With nearly 2 years and 40 percent of developmental testing to go, more technical problems are likely. Addressing new problems and improving engine reliability may require additional design changes and retrofits. Meanwhile, the Department of Defense (DOD) has plans to increase annual aircraft procurement from 38 to 90 over the next 5 years. As GAO has previously reported, increasing production while concurrently developing and testing creates risk and could result in additional cost growth and schedule delays in the future.

Cost and affordability challenges remain. DOD plans to significantly increase annual F-35 funding from around $8 billion to nearly $12 billion over the next 5 years (see figure) reaching $14 billion in 2022 and remaining between $14 and $15 billion for nearly a decade. Over the last year, DOD reduced near-term aircraft procurement by 4 aircraft, largely due to budget constraints. While these deferrals may lower annual near-term funding needs, they will likely increase the cost of aircraft procured in that time frame and may increase funding liability in the future. It is unlikely the program will be able to sustain such a high level of annual funding and if required funding levels are not reached, the program’s procurement plan may not be affordable. DOD policy requires affordability analyses to inform long-term investment decisions. The consistent changes in F-35 procurement plans indicate that DOD’s prior analyses did not adequately account for future technical and funding uncertainty.