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<classification authority="sudocs">GA 1.13:T-NSIAD-96-137</classification>
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 <subject>Air Force procurement</subject>
 <subject>Military aircraft</subject>
 <subject>Military cost control</subject>
 <subject>Military contracts</subject>
 <subject>Multi-year procurement</subject>
 <subject>Aircraft research</subject>
 <subject>Proposed procurement</subject>
 <subject>Future budget projections</subject>
 <subject>Aircraft engines</subject>
 <identifier>C-17 Aircraft</identifier>
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 <title>C-17 Aircraft: Comments on Air Force Request for Approval of Multiyear Procurement Authority</title>
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<abstract>GAO discussed the Air Force&apos;s proposed multiyear procurement of the C-17
aircraft. GAO noted that: (1) the Air Force&apos;s estimate that the
multiyear procurement could save about $896 million is overstated; (2)
the Air Force could save about $300 million without entering into the
multiyear agreement and a portion of this savings could be invested in
cost-reduction initiatives; (3) savings from the C-17 engine contractor
are also overstated; (4) the multiyear procurement will be based on the
Lot VIII contract which contains fixed-price options and incentives; (5)
the government and contractor have reduced costs and accelerated the
aircraft&apos;s production rate in order to keep total costs from exceeding
the 1994 $43-billion estimate; (6) C-17 engineering problems, excessive
research and development costs, and changing configuration requirements
could adversely affect the aircraft&apos;s design stability and production
rate; (7) it is unclear how the changes that the contractor is making to
the aircraft&apos;s design and production methods will affect the proposed
production schedule; (8) the Air Force has identified sufficient funds
to support the proposed procurement at the planned production rate; and
(9) the C-17 multiyear procurement needs to be reassessed.</abstract>
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<note>Testimony</note>
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 <topic>Military aircraft</topic>
 <topic>Military cost control</topic>
 <topic>Military contracts</topic>
 <topic>Multi-year procurement</topic>
 <topic>Aircraft research</topic>
 <topic>Proposed procurement</topic>
 <topic>Future budget projections</topic>
 <topic>Aircraft engines</topic>
 <topic>C-17 Aircraft</topic>
 <topic>DOD Future Years Defense Program</topic>
 <topic>Stealth Aircraft</topic>
 <topic>F-117 Aircraft</topic>
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