The Weapon Systems Acquisition Reform Act of 2009 was signed into law to mandate competition through the entire life of major defense programs – including funding competing sources.
The U.S. Government Accountability Office (GAO), citing a 21% savings from the long-term F-16 engine competition, concludes that competing JSF engines could also yield similar savings. The GAO estimates that the GE / Rolls-Royce F136 competitive engine could pay for itself by producing a 9 to 11% savings.
The House Armed Services Committee reports the P&W F135 engine development is $1.87 billion over plan with an increase of 38 to 43 percent in F135 procurement cost estimates between 2005 and 2008.
The U.S. House of Representatives, citing the reform act, votes 400 to 30 for a defense spending bill that includes funding for the GE/RR F136 competitive engine.
The JSF Joint Program Office (JPO) discloses to the Under Secretary of Defense that P&W F135 costs are “outside the bounds of Selected Acquisition Report (SAR) projects.”
The Under Secretary of Defense creates the independent Joint Assessment Team to analyze and develop a plan to address the P&W F135’s escalating costs.
To drive engine competition and predictable costs, GE/RR submits a unique fixed-price approach to the JPO for initial production F136 competitive engines – shifting cost risk from taxpayers to GE/RR.
P&W announces that it continues to realize production cost reduction benefits, and has offered to provide the JPO with a firm fixed-price proposal for the F135 engine if requested. P&W says the same methodology they used to achieve a 30% cost reduction on the F119 engine is being employed on the F135 engine.
At the request of the Department of Defense and following up on earlier discussions, the GE Rolls-Royce Fighter Engine Team submits a firm fixed-price contract proposal to the Joint Strike Fighter Program office involving early production JSF F136 engines.