By Emelie Rutherford
Defense Secretary Robert Gates in a new letter defends the Pentagon’s decision to spend only a portion of the monies available for parts for future F-22 Raptor jets before next week’s change in presidential administrations, arguing his department did not ignore Congress’ intent.
“The Department of Defense has taken actions consistent with congressional direction, limiting the obligation of tax dollars to avoid excessive sunk costs while funding the activities and materials that are essential to preserving F-22 pricing and production continuity,” Gates wrote in Jan. 9 missives to four senior House Armed Services Committee (HASC) members. “This is a prudent approach that preserves F-22A options with a conscious effort to minimize risk to the taxpayer.”
A slew of congressional defense leaders wanted the Pentagon to order long-lead parts last November for 20 future Lockheed Martin [LMT]-built F-22s. Instead, the Air Force awarded a contract for the advance buy of components for four aircraft, while the Pentagon also approved the purchase of long-lead titanium for up to 20 F- 22s that could also be used on other aircraft (Defense Daily, Dec. 2, 2008).
The fiscal year 2009 defense authorization and appropriations acts together allow the Pentagon to spend up to $140 million in advanced monies for 20 F-22s that would eventually be purchased in FY ’10. After approval from President-elect Barack Obama no later than March 1, another $383 million can be spent on long-lead parts, under the authorization measure.
Yet Pentagon leadership has hesitated to continue the F-22 production line beyond the 183 aircraft already ordered, and opted to leave the decision regarding the long-lead parts purchase for 16 of those 20 F-22s in the Obama team’s hands.
Gates will remain defense secretary after Obama is inaugurated Jan. 20.
Gates’s Jan. 9 letters are in response to a Nov. 21 letter he received from HASC Chairman Ike Skelton (D-Mo.) and then-Ranking Member Duncan Hunter (R-Calif.), along with Air Land subcommittee Chairman Neil Abercrombie (D-Hawaii) and then-Ranking Member Jim Saxton (R-N.J.) (Defense Daily, Dec. 1, 2008). Hunter and Saxton have since retired from Congress.
Lawmakers argued delaying the purchase of long-lead items for 16 of 20 F-22s will add hundreds of millions of dollars in procurements costs, if the aircraft ultimately are purchased. The four lawmakers asked Gates to explain conflicting accounts on whether such a delay would indeed generate added costs, and said a Lockheed Martin proposal supports this stance, which also is shared by some industry sources.
Gates replied in the new letters: “The Not-to-Exceed (NTE) cost estimates provided by the prime contractor detail price ceilings for the Advance Procurement (AP) funding required for the purchase of 4 aircraft, an option for 16 aircraft, and a total lot of 20 aircraft. These NTE costs are the prime contractor’s best estimate at this time. The contractor’s NTE estimates indicate the purchase now of AP for 4 aircraft and subsequent exercise of an option for 16 will cost no more than a purchase of the full 20 aircraft lot today. The NTE estimates are valid until March 16, 2009, providing the new Administration adequate time to make it decision on future F-22A procurement.”