The AV-8B program office does not have a current cost estimate for producing additional radar aircraft. Then, using DOD data on potential savings from a multiyear procurement strategy for engines, we determined that the cost of new aircraft would be about $23.6 million per aircraft, without having provided the contractor the additional $11.3 million worth of reused, government-furnished components and assemblies. According to program documents, under the REMAN acquisition strategy, the Navy expects to pay between $23 million and $29.5 million for each aircraft, exclusive of the value of reused government-furnished equipment. This increase in staff hours causes increases in costs and delays in schedule for the program. If this is the case, the aircraft would not be mission capable until the radar sets were made available. Recommendation

In light of the availability of a more cost-effective strategy to buy new radar AV-8B aircraft, instead of modifying the day attack AV-8B, we recommend that you direct the Secretary of the Navy to develop a current cost estimate for producing new radar model aircraft and (1) revise the acquisition strategy for acquiring upgraded AV-8B aircraft for the Marine Corps so that after the existing annual contract expires, the Marine Corps acquires new radar models rather than remanufactured models and (2) take advantage of the savings available through multiyear procurement.
Why GAO Did This Study

GAO reviewed the Marine Corps' AV-8B Harrier Remanufacture program, focusing on whether it would be more cost-effective to rebuild older aircraft or procure new aircraft with increased capabilities.

What GAO Found

GAO found that the: (1) Navy estimates that it would cost between $23 million and $29.5 million to rebuild each AV-8B aircraft using refurbished parts; (2) Marines could procure new AV-8B radar attack aircraft for about $23.6 million each; (3) Navy does not have the ability to rebuild AV-8B aircraft as quickly as new aircraft can be produced; (4) Navy could revise its procurement strategy to procure new radar aircraft, since the remanufacture program is conducted under single-year contracts; (5) Navy is having difficulty disassembling older aircraft and acquiring replacement components in a timely and cost-effective manner; and (6) surplus radar equipment intended for use in rebuilding the aircraft may not be available as soon as anticipated, which could cause delays in the remanufacture program.