U.S. Special Operations Forces: Helicopter Cost Is Understated and
Reliability Measures Are Inadequate (Letter Report, 01/25/94,
GAO/NSIAD-94-46).

The $1.2 billion in development and procurement estimates submitted to
Congress does not reflect the total costs to develop and procure the
MH-47E and MH-60K helicopters.  For example, at least $367 million in
procurement costs were omitted because they were included in budget
documents for Army programs or activities.  In addition, the total cost
to support and maintain the aircraft--pegged at upwards of $3.6
billion--has not been reported to Congress because there is no
requirement to do so.  The primary reliability measurement criterion the
Army plans to use to assess the helicopters' reliability is flawed
because it measures only their ability to return to friendly territory
and not their ability to perform special missions.  Because the Army is
focusing on the aircraft's ability to return to friendly territory, the
measure does not assess the effectiveness of essential equipment.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-46
     TITLE:  U.S. Special Operations Forces: Helicopter Cost Is 
             Understated and Reliability Measures Are Inadequate
      DATE:  01/25/94
   SUBJECT:  Army procurement
             Military budgets
             Future budget projections
             Helicopters
             Life cycle costs
             Research and development costs
             Military cost control
             Military aircraft
             Product performance evaluation
             Military operations
IDENTIFIER:  MH-47E Helicopter
             MH-60K Helicopter
             CH-47D Helicopter
             UH-60 Helicopter
             Black Hawk Helicopter
             Avionics Integrated System
             Army Special Operations Forces Helicopter Program
             
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