The F135 engine development program has experienced cost growth since the engineering and manufacturing development (EMD) program began in fiscal year 2002. At the beginning of EMD in fiscal year 2002, the F135 engine development program was expected to cost $4.828 billion in then-year dollars. The F–35 program manager reported that as of the end of 2008, development costs have grown to $6.7 billion in then-year dollars, an increase of $1.872 billion, or 38 percent. Additionally, the committee notes that the F–35 program manager has reported an increase of approximately 38 to 43 percent in F135 engine procurement cost estimates between December 2005 and December 2008, in the annual selected acquisition reports for the F–35C and F–35A variants. Between December 2005 and December 2008, engine procurement cost estimates for the F–35B have grown approximately 47 percent, but the F–35B engine procurement cost growth is attributable to both the F135 engine and the F–35B’s lift fan.
Conversely, the F136 engine program has not experienced any cost growth since its inception. The F136 pre-EMD contract, which began in 2002 and was completed in 2004, was for $411.0 million and did not experience cost growth. The F136 EMD contract was awarded in 2005, and the cost estimate, at $2.486 billion, has been stable since contract award. Given the F135 development and procurement cost increases, the House Armed Services Committee stated in Juned 2009 that it was “perplexed” by the Department’s decisions over the past three years to not include an F–35 competitive propulsion system program in its budget requests.
Based on the F135 cost growth, F135 test failures noted in the committee report (H. Rept. 110–652) accompanying the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009, and resultant schedule delays due to F135 engine test failures, the committee remained steadfast in its belief that the non-financial factors of a two-engine competitive program such as better engine performance, improved contractor responsiveness, a more robust industrial base, increased engine reliability and improved operational readiness, strongly favor continuing the F–35 competitive propulsion system program.
Related Link> F-35 Joint Strike Fighter (JSF) Program: Background and Issues for Congress
CRS Report for Congress
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