“The Committee remains steadfast in its belief that the competitive engine program is a critical component of the F-35. Multiple studies, ranging from GAO reports to the Department’s own internal study, have consistently shown that there is no additional cost to fund the competitive engine, and that the second engine will generate additional savings for taxpayers.”
“The F135 primary engine development effort – a separate contract from the airframe development effort – is now estimated to cost about $7.3 billion, a 50 percent increase over the original contract award. This includes an $800 million contract cost overrun in 2008. Engine development cost increases primarily resulted from higher costs for labor and materials, supplier problems, and the rework needed to correct deficiencies with an engine blade during redesign. Engine test problems have also slowed development”
“The committee believes supporting competitive propulsion systems would help reduce operational risk and lead to higher confidence of achieving more affordable life cycle costs. The committee expects that the Secretary of Defense, along with the Department of the Navy and the Department of the Air Force, will remain committed to the development and sustainment of the competitive propulsions systems for the Joint strike Fighter.” - Senate Armed Services Committee report (S.Rept. 109-254 of May 9, 2006) on S. 2766
Office of the Under Secretary of Defense
Competition in Department of Defense Acquisition Memorandum, September 14, 2009
Competition is the cornerstone of our acquisition process and the benefits are well established. The President’s Memorandum on Government Contracting dated March 4, 2009, reinforces the importance of striving for an open and competitive process as an overriding obligation to American taxpayers and the need to place greater emphasis on achieving competition in our procurements.
View the Competition in Department of Defense Acquisition Memorandum
The committee notes that the F135 engine development program has experienced cost growth since the engineering and manufacturing development (EMD) program began in fiscal year 2002. At the beginning of EMD in fiscal year 2002, the F135 engine development program was expected to cost $4.828 billion in then-year dollars. The F–35 program manager reports that as of the end of 2008, development costs have grown to $6.7 billion in then-year dollars, an increase of $1.872 billion, or 38 percent.
View the Report of the Committee on Armed Services
“The Secretary of Defense shall ensure that the acquisition strategy for each major defense acquisition program includes measures to ensure competition, or the option of competition, at both the prime contract level and the subcontract…”
Joint Strike Fighter – Strong Risk Management Essential as Program Enters Most Challenging Phase
“Our prior work, along with studies by the DOD and others, indicate there are a number of nonfinancial benefits...including better engine performance, increased reliability, and improved contractor responsiveness.”
Cancelling the F136 engine poses questions on operational risk and potential cost and savings. Additional issues include the potential impact this termination might have on the US defense industrial base, and on US relations with key allied countries. Finally, eliminating competitive market forces for DOD business worth billions of dollars may concern those who wish to change DOD’s acquisition system and achieve what they see as higher standards of accountability.
View the CRS Report for Congress
Office of the Assistant Secretary of Defense (Public Affairs)
Contract No. 030-97, January 23, 1997
“Pratt & Whitney, Government Engines and Space Propulsion, West Palm Beach, Fla., is being awarded a $804,046,096 cost-plus-award-fee/cost-plus- fixed-fee contract for the Joint Strike Fighter (JSF) Engine Ground and Flight Demonstration Program. Work will be performed in West Palm Beach, Fla., and is expected to be completed by January 2001. Contract funds would not have expired at the end of the current fiscal year. This contract was not competitively procured. The Naval Air Systems Command, Arlington, Va., is the contracting activity (N00019-97-C-0050).”
Office of the Assistant Secretary of Defense (Public Affairs)
Contract No. 544-01, October 26, 2001
“Pratt and Whitney, Military Engines, East Hartford, Conn., is being awarded a $4,803,460,088 cost-plus-award-fee contract for the design, development, fabrication and test of the F135 propulsion system and common hardware as necessary to complete ground testing and demonstrate conformance with specification requirements; the fabrication of propulsion systems for Joint Strike Fighter air system flight testing; and the fabrication of common hardware for the General Electric aircraft engines F136 Propulsion System Flight Test Program…This contract was not competitively procured. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-02-C-3003).”