Pentagon says price of F-35 fighter plane goes up drastically
Pentagon says price of F-35 fighter plane goes up drastically
11:01, March 12, 2010 
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Senior Pentagon officials informed the Congress on Thursday the price of F-35 Joint Strike Fighter has gone up drastically to 80 to 95 million apiece in base- year 2002 U.S. dollars, from the original 50 million in 2001.
Pentagon's current estimate for the plane's price tag is " somewhere between 80 million dollars and 95 million dollars in constant year 02 baseline dollars," Christine Fox, Director of Cost Assessment in Pentagon, told the Senate Armed Services Committee.
Ashton Carter, Defense Undersecretary for Acquisition, Technology and Logistics, said the estimate is based on the 2,443 units the Pentagon is planning to buy from manufacturer Lockheed- Martin. In present day dollar value, the price would be even higher because of inflation.
Calling the fighter jet the "backbone" of future U.S. air combat capability, Carter conceded the program has "fallen short on performance over the last several years, which is "unacceptable. "
He said the price increase would push the program pass a crucial threshold called Nunn-McCurdy threshold, which basically means if a weapon's unit price goes up more than 25 percent, the program would be scrutinized by the Congress. Pentagon has to explain the weapon's importance to national security, lack of viable alternative, and the problems that led to the cost increase.
Carl Levin, Chairman of the Committee, said the Committee has been a strong supporter of the program, but it will not continue its support without regard to increased costs coming from poor program management, or from lack of focus on affordability.
John McCain, a long-time member in the Committee, said he is " deeply concerned about the cost overruns."
"The taxpayers are a little tired of this, and I can't say that I blame them," he said.
F-35 is the Pentagon's marquee fighter jet program, but it was marred by delays and budget overruns. The Pentagon plans to spend an estimated 300 billion dollars over the next 25 years on the program.
In another sign of trouble, Air Force Secretary Michael Donley said last week he expected the deployment of F-35 to be delayed for two years.
Source: Xinhua
Pentagon's current estimate for the plane's price tag is " somewhere between 80 million dollars and 95 million dollars in constant year 02 baseline dollars," Christine Fox, Director of Cost Assessment in Pentagon, told the Senate Armed Services Committee.
Ashton Carter, Defense Undersecretary for Acquisition, Technology and Logistics, said the estimate is based on the 2,443 units the Pentagon is planning to buy from manufacturer Lockheed- Martin. In present day dollar value, the price would be even higher because of inflation.
Calling the fighter jet the "backbone" of future U.S. air combat capability, Carter conceded the program has "fallen short on performance over the last several years, which is "unacceptable. "
He said the price increase would push the program pass a crucial threshold called Nunn-McCurdy threshold, which basically means if a weapon's unit price goes up more than 25 percent, the program would be scrutinized by the Congress. Pentagon has to explain the weapon's importance to national security, lack of viable alternative, and the problems that led to the cost increase.
Carl Levin, Chairman of the Committee, said the Committee has been a strong supporter of the program, but it will not continue its support without regard to increased costs coming from poor program management, or from lack of focus on affordability.
John McCain, a long-time member in the Committee, said he is " deeply concerned about the cost overruns."
"The taxpayers are a little tired of this, and I can't say that I blame them," he said.
F-35 is the Pentagon's marquee fighter jet program, but it was marred by delays and budget overruns. The Pentagon plans to spend an estimated 300 billion dollars over the next 25 years on the program.
In another sign of trouble, Air Force Secretary Michael Donley said last week he expected the deployment of F-35 to be delayed for two years.
Source: Xinhua
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