Sat, Feb 16, 2008
Cost Overruns Nix Upgrades To Oldest Galaxy's
Faced with a program that's
significantly overbudget, on the Thursday the US Air Force
announced it will scale back a multi-billion dollar program to
upgrade engines on C-5 Galaxy heavy-lift transports.
The Associated Press reports the Air Force will proceed to
replace aging engines on 47 C-5B and two C-5C aircraft, with modern
CF6-80C2L1F turbofans -- but 62 of the oldest C-5As will soldier on
with their existing engines, due to cost overruns on what was
originally an $11.1 billion program, when the Air Force awarded the
contract to Lockheed Martin in November 2001.
However, projected costs for the Reliability Enhancement and
Re-engining Program (RERP) have since swelled to $17.5 billion...
triggering a Nunn-McCurdy violation, which requires the Pentagon to
disclose to Congress when costs on a major program exceed 15
percent of the amount originally budgeted.
The contract will be scaled back to $7.7 billion, according to
John Young, under secretary of defense for acquisition, technology
and logistics. Under the new contract, Lockheed may only spend a
maximum of $123 million per plane.
Following the announcement, Lockheed said it was pleased with
the Pentagon's decision to move ahead on part of the program... and
remains "committed to continuing support of the Air Force in the
long-term sustainment of the C-5A fleet."
Translation -- we'll be more than happy to continue fixing those
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