Increment 3.2B was designated as a major  defense acquisition program with an approved cost, schedule, and  performance baseline in June 2013. This incremental approach is consistent with the approach we  recommended in May 2012 and Congress mandated in the 2013 NDAA,  and should provide greater transparency into cost, schedule, and  performance progress. In February 2013, the Air Force awarded an ID/IQ contract with a  The Air Force plans to use individual contractual agreements, known as  delivery orders, which are issued under the ID/IQ contract, for each  modernization effort. Issuing delivery orders for each modernization effort should support  informed management and oversight of each increment by increasing  visibility into funds obligated to individual efforts. Air Force’s Approach to Managing Reliability Improvement Efforts Limits Transparency of Cost and Schedule Progress

The larger of the Air Force’s two primary F-22 improvement efforts— RAMMP—is not managed with its own cost and schedule baseline. The 2013  NDAA directed the Secretary of the Air Force to submit an annual report  to the congressional defense committees on the cost, schedule, and  performance of RAMMP and SRP. The Air Force submitted its first report in  April 2013, but did not explicitly identify baseline cost and schedule  estimates for RAMMP or SRP. However, the report lacked  information for RAMMP needed to serve as baseline cost and schedule  estimates going forward. Without a comprehensive baseline cost and  schedule estimate for reliability efforts that encompasses the life of the  aircraft across all types of funding, it is difficult to consistently track cost  and schedule progress on projects that to date have cost almost $1  billion. F-22 Modernization and Improvement Efforts Will Continue to Face Schedule and Performance Challenges

The Air Force faces schedule and performance challenges in its  management of F-22 modernization and improvement efforts as a result  of continuing maintenance issues. Delays in completing depot-level  maintenance have translated into delays in fielding modernization  increments, which could also affect future increments. Despite Efforts to Improve Reliability and Maintainability, the F-22 Fleet Will Not Meet Its Availability Requirement

The F-22 fleet will not achieve its availability requirement as scheduled  despite substantial investments in RAMMP projects. RAMMP is intended  to increase the availability of the F-22 to perform its missions, primarily  through improving reliability—the likelihood that the aircraft will operate  without failure—and reducing the time required to maintain the aircraft. Officials from Air Combat Command, which is involved in developing  requirements for the F-22, said that the current materiel availability  requirement is based on assumptions that may no longer be applicable. Command officials noted that they expect to revisit this  requirement at some future point with the DOD office that approves F-22  operational requirements to discuss changing the requirement to reflect  operational realities, but they did not tell us specifically when they plan to  do such a reassessment.projects aimed at achieving the current requirement may be unnecessary   Continued investment in some RAMMP  if it is no longer considered valid. Moreover, any delay in revisiting this  requirement could limit funding that DOD might be able to make available  for other high priority activities in a time of austere federal budgets. Recommendations for Executive Action

To support program oversight and ensure efficient use of future funding,  we recommend that the Secretary of Defense direct the Secretary of the  Air Force to take the following two actions:  Incorporate into the Air Force’s annual report to Congress on F-22  improvement projects a comprehensive cost and schedule baseline  estimate for RAMMP that includes development, procurement, and  operations and maintenance costs through the expected life cycle of  the fleet. In its written  comments, reprinted in appendix II, DOD disagreed with one  recommendation and agreed with the other. DOD’s  response stated that reliability and maintainability programs cannot be  baselined like major defense acquisition programs because of cost  fluctuations based on life cycle issues that arise as the weapon system  ages. Therefore, we  continue to believe the recommendation is valid. This report assesses: (1) the Air Force’s new  approach to structuring its F-22 modernization efforts, (2) the Air Force’s  management of its F-22 reliability and structural improvement efforts, and  (3) challenges facing efforts to modernize the F-22 and address reliability  and structural problems moving forward. To assess challenges facing efforts to  modernize the F-22 and address reliability and structural problems  moving forward, we analyzed program schedules and actual and  projected aircraft availability data for fiscal years 2011 to 2018, current as  of August 2013, and reviewed program documents discussing  maintenance issues affecting the aircraft.
Why GAO Did This Study

The Air Force's cost estimate for modernizing the F-22 aircraft's capabilities and making improvements that address the aircraft's reliability and structural problems is $11.3 billion, as of January 2014. In February 2013, the Air Force awarded a multibillion dollar contract for F-22 modernization efforts from 2013 through 2023. The National Defense Authorization Act for Fiscal Year 2013 directed the Air Force to report annually on improvement efforts.
GAO was asked to review F-22 modernization and improvement efforts. This report assesses (1) the Air Force's new approach to structuring its F-22 modernization efforts, (2) the Air Force's management of its F-22 reliability and structural improvement efforts, and (3) challenges facing efforts to modernize the F-22 and address reliability and structural problems moving forward. GAO analyzed program management, contracting, and other relevant documents; analyzed aircraft availability information; and spoke with Air Force officials.

What GAO Found

After a decade of managing its efforts to modernize the F-22 as part of the original F-22 program, the Air Force has now begun structuring these efforts as distinct incremental programs, and plans to continue doing so moving forward. For example, the Department of Defense (DOD) recently designated F-22 modernization Increment 3.2B—intended to integrate two types of missiles onto the F-22 and upgrade other subsystems—as a major defense acquisition program with its own baseline cost and schedule estimate. This approach is consistent with the approach mandated in the National Defense Authorization Act for Fiscal Year 2013 and recommended in a May 2012 GAO report, and should allow decision makers to see a more precise view of cost and schedule changes. Furthermore, the Air Force plans to use individual contractual agreements for each modernization effort, a contracting approach that should support informed management and oversight of each increment by increasing visibility into funds obligated to individual efforts.
In contrast to modernization, the larger of the Air Force's two primary F-22 improvement efforts—the Reliability and Maintainability Maturation Program (RAMMP)—is not managed with its own cost and schedule baseline. This approach limits transparency of cost and schedule progress. The National Defense Authorization Act for Fiscal Year 2013 directed the Air Force to submit an annual report to the congressional defense committees on RAMMP and on F-22 structural repair efforts, to include baseline cost and schedule estimates. While the first report submitted under this requirement in April 2013 provided some cost and schedule information on the structural repair efforts, which could be used as a baseline estimate going forward, it did not include such information for RAMMP. Without a comprehensive baseline cost and schedule estimate for reliability efforts that encompasses the life of the aircraft across all types of funding, it is difficult to consistently track cost and schedule progress on projects that, to date, have cost almost $1 billion.
The Air Force faces schedule and performance challenges in its management of F-22 modernization and improvement efforts as a result of continuing maintenance issues. Delays in completing depot-level maintenance have translated into delays in fielding modernization increments, which could also affect future increments. Further, the F-22 fleet will not achieve its availability requirement as scheduled, despite substantial investment in RAMMP projects. RAMMP is intended to increase the availability of the F-22 to perform its missions, primarily through improving reliability—the likelihood that the aircraft will operate without failure—and reducing the time required to maintain the aircraft. Air Combat Command officials stated that the current requirement is based on assumptions that may no longer be applicable, and that they expect to revisit this requirement at some future point, although they did not specify when that reassessment would occur. Thus, continued investment in some projects aimed at achieving a requirement that may no longer be valid may be unwarranted. Any delay in revisiting this requirement could limit funding DOD might be able to make available for other high priority activities in a time of austere federal budgets.

What GAO Recommends

To support program oversight and ensure efficient use of future funding, GAO recommends that the Air Force include comprehensive cost and schedule baselines for reliability projects in its annual report to Congress and expedite reassessment of the F-22 availability requirement. DOD disagreed with the first recommendation, stating that reliability programs cannot be baselined like major defense acquisition programs, and agreed with the second. GAO continues to believe the first recommendation is valid as discussed in the report.