GAO warns about next phase of F-35 program.

• Author: Harper, Jon
• Position: Budget Matters

A government watchdog warned Congress that lawmakers could have difficulty holding the Air Force accountable for controlling costs during follow-on modernization of the F-35.

The current joint strike fighter development effort is projected to end in 2017 when Block 3F developmental flight testing is completed, for a total development cost of $55 billion.

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The first increment of follow-on modernization, Block 4, is expected to add new capabilities and correct deficiencies. But the Government Accountability Office said the Pentagon's plans could be problematic.

"Without setting up the modernization as a separate program with its own baseline and regular reporting as best practices recommend, it will be difficult for Congress to hold DoD accountable for achieving F-35 Block 4 cost, schedule and performance goals," Michael J. Sullivan, GAO's director of acquisition and sourcing management, told lawmakers recently.

"Although the requirements are not yet final and no official cost estimate has been developed for Block 4, DoD's fiscal year 2017 budget request indicates that the department expects to spend nearly $3 billion on these development efforts over the next six years," he testified before the House Armed Services subcommittee on tactical air and land forces.

As of March, the Pentagon's estimated total acquisition cost for the F-35 program is $379 billion, about $12 billion less than anticipated two years ago.

But the aircraft continues to face affordability challenges, Sullivan noted.

The program is expected to reach peak production rates in 2022, at which point the Defense Department expects to spend more than $14 billion a year, on average, over a 10-year period on the jets.

"When acquisition and sustainment funds are combined, annual funding requirements could easily approach $30 billion in some years," Sullivan said.

Budget constraints have compelled the Air Force to defer F-35 aircraft buys in recent years, a trend that could...