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Mar 12, 2013, 09.09 AM IST | Source: Reuters

Pentagon needs $12.6 bn a year till 2037 for F-35: Report

The Pentagon needs to budget USD 12.6 billion each year through 2037 to finish developing and paying for all the Lockheed Martin Corp F-35 fighters it plans to buy, according to a report released by a Congressional watchdog agency.

Pentagon needs $12.6 bn a year till 2037 for F-35: Report

The Pentagon needs to budget USD 12.6 billion each year through 2037 to finish developing and paying for all the Lockheed Martin Corp F-35 fighters it plans to buy, according to a report released by a congressional watchdog agency on Monday.

This amounts to USD 2 billion more in projected annual funding needs than the government accountability office (GAO) had included in a draft report obtained and published by Reuters on Saturday.

The draft report excluded the cost of the fighter's single engine, which is built by Pratt & Whitney, a unit of United Technologies Corp, said Joe DellaVedova, a spokesman for the Pentagon's F-35 programme office.

The report said the Pentagon was expected to shell out USD 316 billion through 2037 on the remaining development and purchase of the radar-evading warplane, on top of billions of dollars already spent, for a total program cost of around USD 400 billion.

"Overall, the F-35 Joint Strike Fighter programme is now moving in the right direction after a long, expensive, and arduous learning process. It still has tremendous challenges ahead," GAO concluded in its annual report to Congress on the F-35, the Pentagon's costliest weapons programme.

The F-35 is an advanced fighter meant to serve the US Air Force, Navy and Marines for decades to come. The program, which has seen costs rise 70 percent from initial projections amid numerous technical complications, is facing a critical phase in which any new setbacks or reductions in orders from the US military and its allies would further boost the cost per plane.

The US military has more work ahead on the program but remains committed to the development and procurement of the F-35 fighter, said Air Force Lieutenant General Christopher Bogdan, who runs the programme for the Pentagon.

"We have more work to do and we're committed to delivering on the promise of the F-35; it will form the backbone of US air combat superiority for generations to come," Bogdan said.

Lockheed said it was working with the F-35 programme office, military services, international partners and suppliers to drive down the cost of building and operating the new fighter jets.

"The F-35 programme has made significant progress and we are singularly focused on executing on our commitments for the F-35 development, production and sustainment programmes," said Lockheed spokesman Michael Rein. He said the cost of the planes had already come down 50 percent since the start of production, and Lockheed consistently beat US government pricing estimates.

The Pentagon estimates it will cost over USD 1 trillion for the cost of operating and maintaining all 2,443 warplanes it plans to buy, over an estimated 30-year service life. The Pentagon and F-35 program office are working to reduce those costs, which the GAO report said were 60-percent higher than those applicable to aircraft the F-35 is slated to replace.

The GAO report said the Pentagon's Cost Assessment and Programme Evaluation (CAPE) office recently forecast annual operations and maintenance costs of USD 18.2 billion for all three models of the F-35, compared to USD 11.1 billion spent in 2010 to operate and sustain the legacy aircraft.

The "(department of defence) and the contractor now need to demonstrate that the F-35 programme can effectively perform against cost and schedule targets in the new baseline and deliver on promises," the report said.

"Achieving affordability in annual funding requirements, aircraft unit prices, and life-cycle operating and support costs will in large part determine how many aircraft" the US military can ultimately acquire, it said.

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