Pages

Monday, December 9, 2013

U.S. Bomber Planes at $81 Billion Seen 47% More Than Plan


The U.S. Air Force’s new long-range bomber may cost as much as $81 billion for the 100 planes planned, 47 percent more than the $55 billion sticker price the service has listed.

The Air Force based its estimate of $550 million per plane on the value of the dollar in 2010, and it represents only the production costs for an aircraft that won’t be deployed for at least 10 years. Including research and development, the bomber would cost as much as $810 million apiece in this year’s dollars, according to calculations by three defense analysts.


The cost of the new bomber will draw close scrutiny in an era of declining defense budgets, as the Pentagon faces $500 billion in reductions over nine years under the budget process called sequestration. The Air Force’s track record also is being questioned after soaring costs for the aging B-2 stealth bomber the new plane would replace and the F-35 fighter jet, the most expensive U.S. weapons system, that’s now being built.

“The Air Force has zero credibility on start-of-program cost estimates unless and until it ponies up real details about the bomber and its acquisition plan,” Winslow Wheeler, a former Government Accountability Office defense analyst now with the Project on Government Oversight in Washington, said in an e-mail. “It is a fool’s errand, or worse, to pretend the cost stated now is anything but a bait-and-switch buy-in gambit.”


B-2, F-35

The B-2 was planned as 132 planes for about $571 million each in 1991 dollars before the first Bush administration cut the fleet to 20 planes in the early 1990s. That resulted in a price of about $2.2 billion per bomber, a fourfold increase, in a program that remained highly classified during its development.

The F-35 program has a current price tag of $391.2 billion for 2,443 aircraft, a 68 percent increase from the projection in 2001, as measured in current dollars, for 409 fewer planes than originally planned.

Whatever its ultimate cost, the new bomber would mean billions for the defense contractor chosen to build it. Lockheed Martin Corp. (LMT) of Bethesda, Maryland, and Chicago-based Boeing Co. (BA), the No. 1 and No. 2 U.S. defense contractors, said in October that they’ll bid for the project as a team. They may end up competing against Northrop Grumman Corp. (NOC) of Falls Church, Virginia, the prime contractor for the B-2, which hasn’t yet announced an intention to bid.

The Air Force has requested $379 million in funding for development this year, increasing to more than $1 billion in fiscal 2015 and $2.8 billion in fiscal 2018, according to data released by the service.


Through 2023

The Air Force hasn’t provided its rationale for the increased spending. The Congressional Budget Office said the Air Force plans to request $32.1 billion through 2023.

The $550 million per plane projection for the new bomber is “the only cost estimate approved for public release at this time,” Air Force spokesman Ed Gulick said in a statement.

Gulick said the estimate is a “target that helps balance capabilities and cost” and is being used in “rigidly containing the design” of the bomber.

The more complete “program acquisition unit cost” will be derived later by adding research and development, as well as estimating “inflation up to the year you purchase aircraft,” Gulick said.

The Air Force’s cost estimate “seems rather ambitious,” said Todd Harrison, a defense budget analyst with the Center for Strategic and Budgetary Assessments, a Washington-based policy group. He calculated a price of $810 million a plane in fiscal 2014 dollars, or $81 billion for 100, based on $20 billion in projected research and development costs.

Historical Increases

“Aircraft programs, and stealth aircraft in particular, have gone far over their initial cost estimates,” Harrison said. “If you factor in historical cost growth, the total program cost could easily top $100 billion.”

Russell Rumbaugh, a defense analyst with the Stimson Center, also a policy group in Washington, said his comparable estimate is $682 million per plane. Kevin Brancato, a defense analyst with Bloomberg Government, projected $784 million per plane in this year’s dollars.

“The incentives in the budget system almost force the services to low-ball their cost estimates,” said Gordon Adams, a professor at American University in Washington who oversaw the national security budget for the White House under President Bill Clinton. “Otherwise they do not get the program in the budget. It grows later.”

The Air Force now operates a fleet of 159 long-range bombers, including 63 swing-wing B-1Bs developed in the 1980s by Rockwell International, which is now part of Boeing, and the 20 B-2s from the 1990s.


Aging B-2s

The new bomber is needed because the “B-2 is an older airplane that’s getting expensive” to maintain and “it’s not as stealthy as we’re now capable of making aircraft,” Deputy Defense Secretary Ashton Carter said in an interview before he left office Dec. 4.

As the Air Force anticipates its needs 10 or 20 years from now, “expecting those aircraft to perform reliably at such advanced ages may prove to be overly optimistic,” said Mark Gunzinger, an airpower analyst with the Center for Strategic and Budgetary Assessments.

The Air Force is still flying 76 B-52 bombers from the H series that entered service in May 1961. They remain capable of launching conventional and nuclear bombs and cruise missiles.


Top Projects

The Air Force has identified the new long-range bomber as one of its top three weapons projects, along with the F-35 from Lockheed and the KC-46 aerial refueling tanker made by Boeing.

Defense Secretary Chuck Hagel has said the bomber will support the U.S. strategy of rebalancing toward Asia. Pentagon officials have said they’ll do as much as they can to shelter such priority weapons systems from the automatic budget cuts.

An Air Force summary of the bomber describes a stealth aircraft able to deliver both nuclear and conventional weapons. While the “baseline aircraft” would be piloted, the bomber would be designed to “enable future unmanned capability,” according to the service.

Beyond that, the Air Force, which has said the bomber would incorporate “proven technologies,” has said little about its classified plans for the new plane.

“It would be a mistake to view this aircraft as simply another bomber,” said Retired Lieutenant General David Deptula, the Air Force’s former chief of intelligence, surveillance and reconnaissance.


‘Cloaked in Secrecy’

It may take off on a bombing run, using intelligence and surveillance sensors provided from other platforms and on-board jammers to degrade ground radar, he said in an e-mail. The bomber crew also could use its radar and sensors to direct land-and sea-based strikes, as well as collect intelligence on the return flight, according to Deptula, who helped plan the air campaign in the 1991 Gulf War.

“The operational characteristics are going to be cloaked in secrecy for a while, and I think that makes perfect sense,” Air Force Chief of Staff General Mark Welsh told reporters in November.

Welsh said capabilities would be carefully weighed against the $550 million-a-plane target.

“What we don’t want to do is try to reach into some level of technology that’s impractical.” That’s when “prices start to get out of control and your requirements start to drift,” Welsh said. “We are not going to go there.”

Adams cited the B-2’s cost escalation, as well as plans for a medium-range bomber that Defense Secretary Robert Gates canceled as too costly in 2009. Gates supports the new bomber.

“How many times are we going to go down this overpriced bomber road?” said Adams said. “It’s like Lucy with the football. We never get to kick an affordable aircraft through the goalpost.”

Tags

0104 2A5 2A6 2A7 MBT 767-2C 8Cs A10 A400M acquisition acrobatic Afghan Air Force Afghanistan Afghanistan's Africa AgustaWestland Air Force Air Show airlift Airlines Al-Shabaab Militants Alenia Altius UCAV amphibious AMX Analysis Angola Anti-Ship Missile Useful antiaircraft Antonov Apache APP Argentine Asia-Pacific ASTOR ATC Attack AU-1 AU-2 Australia Australian Army Training B1 B52 BAE BAE Systems Baltic Bangladesh base Belarus Belgium Bharat Heavy Electricals Limited BHEL BMP-1P Boeing Boeing-Vertol 107 Bolivia Bomber Book books border dispute Brazil Brazil's Brazilian Brazilian Air Force's BRD-4 Brunei budget Bulgarian C-130 C-130J Super Hercules C-130s C-130T C-27J C-802 C212 CAF Canada Capabilities Caravan Cargo CAS CASA Celebration CH-53E CH-53K Challenges China China Navy Chinese Chinese New Z-19 clone CMID COIN Cold War Colombia Colombian communicaions conflict controversy Crash CSIST Curiosities Cyprus Czech Czech Ministry of Defence D-20 Guns DAPA Dassault deal Defence Defence Products Denmark Department of Defense development DoD DoD's dogfight DPP DRDO Drone E-3F EADS EBRC ECM Editorial Egypt Egypt Orders Rafale Fighter Aircraft. Embraer engine espionage Estonia Eurofighter Europe exercise F-16 F-16C/D F-16s F-35 F-35A F-35C F-5E F-5E's F-5s F/A-18 F15 F16 F2 F22 F35 F4 F5 FA-50 FAE fake fake Chinese parts Falklands FAP FC-1 FC-20 FFX Fighter fighter-bomber Fire Scout France French French Army French Defence French Navy's Fuerza Aérea Ecuatoriana future G-20 German Army Germany GoPro Greece Trials Gripen grounding Guerrilla Halwara air bases Hawk Helicopter History humor Hungrya Hurkus IAF IAI ICBM IFV Il-76MD-90A (Il-476) Ilyushin image IN India India's India's Ministry of Defence India’s new Defence Minister Indian Indian Navy Indian Navy's Indigenous Indonesia Indonesia. Iran Iran's Iraq Iraqi Government Iraqi Ministry of Defence Iraqi Shia militias IRIAF IRIAF's IRST ISF Islamic State Island ISR Israel Israel Aerospace Industries Israel's Israeli Defense Forces Italy J-10 J-10B J-20 J-31 J10 J11 J15 J16 J20 J31 Japan Japan Maritime Self-Defense Force Japan Ministry of Defence Japan's JAS 39E JASSM Jeddah Port JF-17 JF17 JH-7 jobs Judicial KAI KC-135 KC-46A KC390 KC46 Kenya's Coast Kfir KH-31 KH-35U KMW KMW's Kongsberg Naval Strike Missile korea KV-2 L-39 Lavi Law Liberation Army Navy Líbero Badaró Libya Libya's Lift litigation Lockheed Lockheed Martin Unveils Legion IRST Pod. London Navy M-346 M346 maintain Malaysia Malaysian government Maneuvers MBT Mi-24 Mi-24V Mi-35Ms Mi-35Ps Mi-8 Middle East Mig Mig-29K MIG-31 Military Military Helicopters Designs Minister for Defence Ministry of Defence Minsk Mirage Missile Mitsubishi MMRCA MND MoD modifications Moscow MPR MQ-8B MQ-8C Nanji NAO NATO NATO's NAVAIR Naval Aviation negotiations Nepal Nevada new capability new generation Next Genration of Mobility Niger Nigerian Air Force North Korea Northrop Northrop Grumman Norway NRP Obama's OBOGS OGMA Oman Defence organisational Oshkosh Defense Ouargla PAF PAK DA Aircraft’s PAK FA PAK-FA Pakistan Pakistan Army Pakistan Navy's Pantsir Paris patrol PBL People's Liberation Army PGG 618 Philippines PK PLA PLAAF PLAN PLANAF Poland Polish Army Polish Ministry of Defence Popras SAM Portugal Portuguese Navy preemptive strike ProAn-70 pproduction Production PT PAL's PzH 2000 QF-16 R-73 R-77 RAAF RAAF's RAF Rafale Red Arrows refueling repair replacement Republic of China Army requirements retired Rocket Launcher RoKN RoKN's Romain Rooivalk Royal Malaysian Navy's Royal Navy Royal Navy latest Spearfish Torpedo Royal Norwegian Army Royal Thai Navy RR RTAF RTD rumor Russia Russia New Military Russia's Russia's New Military Nuclear Strike Russian Russian Air Force Russian Air Force's Russian Army Russian Mi-28 Russian military Russian Ministry of Defence Russian Navy's Russian RD-93 S-26T SA-6 Saab SAAF Sales São Paulo SAR SAS Saudi Arabia Scorpion Separatists Serbia Serbia's Military Shia militant group SIFICAP Simulator Singapore SisCaPED Slovakia Software South African soyuz space Spain SR-71 SR71 Strike aircraft Su-34 SU-35 SU-35 Aircraft SU27 Su30 Su35 Submarine Sudan Sukhoi summary Support Switzerland Syria Syrian Atomic Energy Commission T-346A T-X tactics Taiwan Taiwan's Tanker Technology Tejas Textron The Berlin Air Show leatest Tor-M2U Tornado TOT Trainer Training Turkey Type 071 LPDs U.S. Navy UAC's UAE UAV UAV technology UCAV UK UK defence UK Ministry of Defence UK-based UK's UKIS Ukraine Ukrainian Ukrainian Separatists United Arab Emirates United Kingdom upgrade US US Air Force US Air Force's US Army US Department of Defense US forces US government US Marine Corps US Marine Corps F-35C US Navy US Navy's US-2i USA USAF USAF Contemplates A-10. USAF's USD USMC USN USN's USS V-22 V-22 Gunship VBMR Venezuela video Vietnam VTOL VVS Washington Weapons Western X-47B Xavier de Toledo Y20 Yak-130 Yak-152 Yemen Yemeni Air Force Z-18 Z-19 Zhuhai Air show Zhuhai Air Show 2014 ZU-23-2 ZU-23-2 Armed BMP-1P