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Price of Global Hawk Surveillance Program Rises
Purchase Order Scaled Back as Cost of Air Force Plan Increases to $6.3 Billion

By Renae Merle
Washington Post Staff Writer
Tuesday, December 7, 2004; Page A17

The cost of a program to build high-profile unmanned surveillance aircraft, known as Global Hawks, has increased by nearly $900 million since 2001, according to a Government Accountability Office report released yesterday.

…Most of the increased cost is related to the development of a second, heavier version of the unmanned plane with enhanced sensors. The Air Force decided to buy the aircraft before all of the technology has been developed, raising concerns that costs will inevitably increase, the report said. The GAO recommended delaying the purchase of more aircraft, except for those needed for testing, until a new strategy can be developed.

The restructured program has also experienced delays, the report said. As of July 2004, only about 10 percent of the flight testing was completed, according to the report. "Test officials told us that the lack of quality test data is hampering their ability to provide meaningful oversight," the report said.

The Air Force rejected the GAO's recommendations, noting that a delay could cost an additional $400 million and that the risks are being adequately managed. "Not included in this rough estimate is the likely catastrophic financial impact to small business vendors and subcontractors, and costs to mothball and restart production facilities," Glenn F. Lamartin, director of defense systems, said in the Pentagon's response included in the report. A Northrop spokesman declined to comment.

I hope the decision to buy the aircraft based on speculative technology had nothing to do with priming the corporate cash pump.

Posted by Prometheus 6 on December 7, 2004 - 3:41am :: Economics | War
 
 

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