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Navy Aviation: AV-8B Harrier Remanufacture Strategy Is Not the Most Cost-Effective Option

NSIAD-96-49 Published: Feb 27, 1996. Publicly Released: Feb 27, 1996.
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Highlights

GAO reviewed the Marine Corps' AV-8B Harrier Remanufacture program, focusing on whether it would be more cost-effective to rebuild older aircraft or procure new aircraft with increased capabilities.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense In light of the availability of a more cost-effective strategy to buy new radar AV-8B aircraft, instead of modifying the day attack AV-8B, the Secretary of Defense should direct the Secretary of the Navy to develop a current cost estimate for producing new radar model aircraft.
Closed – Implemented
DOD did not concur with the recommendation to review its current acquisition strategy and begin negotiations to buy new aircraft. Instead, DOD stood by its original assessment that remanufacture is the most cost-effective means to modernize the fleet.
Department of Defense In light of the availability of a more cost-effective strategy to buy new radar AV-8B aircraft, instead of modifying the day attack AV-8B, the Secretary of Defense should direct the Secretary of the Navy to revise the acquisition strategy for acquiring upgraded AV-8B aircraft for the Marine Corps so that after the existing annual contract expires, the Marine Corps acquires new radar models rather than remanufactured models.
Closed – Implemented
DOD did not concur with the recommendation to review its current acquisition strategy and begin negotiations to buy new aircraft. Instead, DOD stood by its original assessment that remanufacture is the most cost-effective means to modernize the fleet.
Department of Defense In light of the availability of a more cost-effective strategy to buy new radar AV-8B aircraft, instead of modifying the day attack AV-8B, the Secretary of Defense should direct the Secretary of the Navy to take advantage of the savings available through multi-year procurement.
Closed – Implemented
DOD partially concurred that the multi-year procurement strategy could result in savings, but concluded that it may not be prudent to enter into multi-year contracts, since these strategies tend to inhibit the fiscal flexibility needed during times of shifting priorities and monetary constraints. DOD states that it is presently facing situations of shifting priorities and constrained monetary resources.

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Topics

Air warfareAircraft componentsCost effectiveness analysisDefense capabilitiesEquipment repairsManufacturing contractsMilitary aircraftNaval procurementRadar equipmentSpare partsAttack aircraft