DOD plans to have a fleet of 120 C-17s delivered by 2004. In December 1993, as a result of the review, the Secretary of Defense announced that the program would be stopped at 40 aircraft unless McDonnell Douglas could demonstrate that program cost, schedule, and performance warranted completing the 120 aircraft program. C-17’s Planned Role Has Changed

The Air Force justified the C-17 in the early 1980s on the aircraft’s planned capabilities to operate routinely in an intratheater shuttle role; perform direct delivery missions to forward airfields, potentially in hostile areas; and airlift substantial amounts of outsize cargo such as tanks and helicopters. The C-17 was also intended to provide the capability to conduct low-level parachute extractions of the Army’s heavy equipment and to airdrop troops and equipment. Thus, the C-17 will not be used for this mission. However, the C-17 has not been able to meet initial requirements because of airflow problems caused by its design. Alternatives to the C-17 Can Help Meet Airlift Requirements at Significantly Lower Cost

DOD’s COEA showed that the C-17 is the preferred military airlifter because, when considering delivery of outsize cargo, the C-17 retains its throughput ability better than the C-5 if (1) airfield constraints are encountered and (2) the C-17’s planned utilization rate (higher than the C-5’s experienced rate) is achieved. Therefore, the savings associated with a mixed fleet of C-17s and commercial freighters could be significantly greater than the COEA reported.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) C-17 program, focusing on: (1) the aircraft's ability to achieve its original program requirements; and (2) whether further procurement of C-17 aircraft is justified.

What GAO Found

GAO found that: (1) although the C-17 was intended to operate routinely in an intratheater shuttle role, perform direct delivery missions to forward airfields, airlift substantial amounts of outsize cargo, provide low-level parachute extractions, and perform strategic airdrops, it has not been able to meet its original operational requirements and will not be used as intended; (2) DOD concluded that the C-17 fleet was its preferred choice for meeting its military airlift requirements because of significant utilization and delivery advantages; (3) recent DOD cost and operational effectiveness analyses showed that a mixed fleet comprised of 40 C-17 aircraft and 64 commercial freighters could be more effective and procured at cost savings of at least $10.7 billion when compared to a fleet of 120 C-17 aircraft; and (4) the 120 C-17 fleet is not the most cost-effective way to meet intratheater military airlift requirements.