Some of the aircraft in a training configuration have been modified to an interim configuration. Total Cost of the B-2 Appears to Have Stabilized

The Air Force’s estimate of the total program cost for the B-2 program has changed less than 1 percent since 1994; however, the estimate has been affected by changes made by both Congress and the Air Force. Table 1.1 shows the Air Force’s 1994-96 cost estimates for the development, procurement, and military construction of the B-2 as reported in annual selected acquisition reports. Through fiscal year 1997, the Air Force was appropriated $43,178 million, or 96 percent, of the $44,754 million total program estimate. In the last 3 fiscal years, Congress added $734 million to the B-2 program—$125 million to preserve the B-2 industrial base, $493 million to upgrade the first test aircraft to operational status, and $116 million to enhance the block 30 capabilities. I) is understated by $89 million. Air Force officials said that without these funds, two of the test aircraft would not be upgraded to fully capable aircraft, leaving only 19 fully capable B-2s. B-2 Cost Increases Are Possible

B-2 estimated costs could increase if (1) the flight test program is extended beyond March 1998, (2) more B-2 performance deficiencies are identified during the time remaining in the acquisition program, and (3) additional development and procurement activities are initiated to better maintain the low-observable features of the B-2s. Full operational capability of the B-2 is planned to be achieved in 1999. The Air Force is reviewing specific B-2 deployment requirements and working to resolve deployment-related problems by the time the B-2s are scheduled to be fully capable in 1999. B-2 Bomber: Status of Cost, Development, and Production (GAO/NSIAD-95-164, Aug. 4, 1995).
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the B-2 bomber, focusing on the current status of cost and operational issues.

What GAO Found

GAO noted that: (1) the total cost of the B-2 appears to have stabilized; (2) the Air Force has reported that the total estimated B-2 acquisition costs (development, procurement, and military construction) decreased from $44,946 million in early 1995 to $44,754 million in early 1997; (3) the estimated cost declined even though Congress added new requirements to the B-2 program and provided additional funds of $734 million in fiscal years 1995, 1996, and 1997; (4) Air Force officials advised GAO that the $44,754 million in cost reported to Congress was understated by $89 million; (5) they said that the impact of the understatement would be that two of the test aircraft would not be fully upgraded to block 30, making them less than fully capable; (6) through fiscal year 1997, Congress appropriated funds for about 96 percent of the estimated total cost of $44,754 million; (7) although the cost estimate has not changed substantially since 1995, costs could increase if: (a) the flight test program is extended beyond March 1998; (b) more performance deficiencies than predicted are identified during the remaining portions of the acquisition program; and (c) unplanned development and procurement activities become necessary to better maintain the low-observable features of the B-2s; (8) the Air Force declared on April 1, 1997, that the B-2s in an interim configuration had achieved initial operational capability; (9) however, the Air Force decided it was unrealistic to plan on deploying the interim aircraft to forward operating locations because of difficulties being experienced in maintaining low-observable characteristics at the B-2's main operating base; and (10) the Air Force is reviewing specific B-2 deployment requirements and working to resolve deployment-related problems by the time the B-2s are scheduled to be fully capable in 1999.