Test Results Do Not Support Full-Rate Production

LRIP of the Joint STARS aircraft began in fiscal year 1993. Alternative Aircraft Should Be Considered

There is an opportunity not currently under consideration that could reduce the Joint STARS program cost and result in an improved system. Since the Joint STARS was approved for LRIP, the procurement cost objective of the Air Force’s share of the Joint STARS has increased by about $1 billion. I would ask that you underscore your personal support for our collective efforts on behalf of [Joint STARS] when you meet with your NATO and European counterparts.”
Notwithstanding DOD’s September 1996 commitment to full-rate Joint STARS production, a DOD official informed us that the NATO armament directors in their November 1996 meeting delayed for 1 year any decision on designating Joint STARS as NATO’s common system or pursuing an alternate system to be developed. However, DOD plans follow-on test and evaluation of the system to address the deficiencies identified during the system’s earlier testing. On September 20, 1996, DOT&E sent to Congress a Joint STARS “Beyond LRIP” report that (1) clearly indicates that further operational testing is needed, (2) could only declare effectiveness for operations other than war, and (3) stated that Joint STARS is unsuitable as tested. On September 25, 1996, DOD approved the full-rate production of Joint STARS. Conclusions

Notwithstanding any concurrent efforts to have Joint STARS designated as a NATO common system, Joint STARS test performance and the clearly unresolved questions about its operational suitability and affordability should have, in our opinion, caused DOD to delay the full-rate production decision until (1) the system had, through the planned follow-on operational test and evaluation, demonstrated operational effectiveness and suitability; (2) the Air Force had completed an updated analysis of alternatives for the Joint STARS to address the identified aircraft suitability and cost issues; and (3) the Air Force had developed an analysis to determine whether a cost-effective maintenance concept could be designed for the system. To determine whether DOD considered and resolved important cost and performance issues prior to making its full-rate production decision, we reviewed Joint STARS program budget documents and program-related memoranda issued by the Under Secretary of Defense for Acquisition and Technology. Comments From the Department of Defense

The following are GAO’s comments on the Department of Defense’s (DOD) letter dated March 31, 1997. We believe, given the system’s test performance as reported by both the Air Force Operational Test and Evaluation Command (AFOTEC) and DOT&E and the program’s procurement cost growth of $1 billion between the low-rate and full-rate production decision points, that an informed full-rate production decision required the following information: (1) an approved test and evaluation master plan for follow-on operational testing and specific plans for the tests called for in that master plan, (2) the results of the already ongoing study of ways to reduce the program’s cost, and (3) an analysis of alternatives to the current platform. As we stated in the body of our report, the program could have continued under low-rate initial production (LRIP) until operational effectiveness and suitability for combat were demonstrated and plans to address identified deficiencies and reduce program costs were completed. 4. 5. 6. 7. DOD made its Joint STARS full-rate production decision without this knowledge. 12.
Why GAO Did This Study

GAO reviewed the Department of Defense's (DOD) recent decision to commit to the full-rate production of the Joint Surveillance Target Attack Radar System (Joint STARS), focusing on whether: (1) the system had demonstrated a level of maturity through testing to justify a full-rate production commitment; (2) DOD considered and resolved important cost and performance issues prior to making its decision; and (3) there are future actions that could reduce program risk.

What GAO Found

GAO noted that: (1) Joint STARS' performance during its combined development and operational test and the operational evaluation done in Bosnia do not support a decision to commit the system to full-rate production; (2) the system's operational effectiveness and suitability were not demonstrated during the operational testing; (3) DOD's decision to move Joint STARS into full-rate production was premature and raised the program's level of risk; (4) the program could have continued under low-rate initial production (LRIP) until operational effectiveness and suitability for combat were demonstrated and plans to address identified deficiencies and reduce program costs were completed; (5) DOD decided in favor of Joint STARS full-rate production without the benefit of that information; (6) during the period that the full-rate production decision was being considered, the Assistant to the President for National Security was promoting the sale of the system to the North Atlantic Treaty Organization (NATO); (7) in an August 10, 1996, memorandum to the Secretaries of State, Defense, and Commerce and to the Chairman of the Joint Chiefs of Staff, the Assistant to the President stated that: "We have been working through various military, diplomatic, and political channels to secure NATO support for a fall 1996 decision in principle by the Conference of Armament Directors...to designate (Joint STARS) as NATO's common system"; (8) a DOD official informed GAO that in November 1996, the NATO armament directors delayed their decision on Joint STARS for 1 year; (9) before DOD approved the full-rate production of Joint STARS, the Director of Operational Test and Evaluation (DOT&E) provided Congress with a Joint STARS "Beyond LRIP" report; (10) the report clearly indicates that further operational testing is needed, DOT&E could only declare effectiveness for operations other than war, and the system was unsuitable as tested; (11) DOD plans follow-on test and evaluation to address the deficiencies identified during the earlier testing; (12) there is an opportunity not currently under consideration that could reduce the Joint STARS' program cost and result in an improved system; (13) since the Joint STARS was approved for LRIP, the procurement cost objective of the Air Force's share of the Joint STARS has increased by about $1 billion, primarily due to the greater effort and more resources needed to refurbish the 25- to 30-year-old Boeing 707 airframes than previously anticipated; and (14) it may now be more cost effective for the Air Force to buy the Boeing 767-200 Extended Range aircraft or some other new, more capable aircraft.