A Methodology for Comparing Costs and Benefits of Management Alternatives for F-22 Sustainment

Abstract : In 2007, the U.S. Air Force planned to contract with Lockheed Martin, which would act as the product support integrator (PSI) to manage weapon system sustainment for the F-22 air vehicle, and with Pratt & Whitney, which would fulfill the same role for the F119 engine. (The contracts would continue the existing sustainment approach featuring public-private partnerships, in which most depot repair work is managed by the contractors but is performed in Air Force depots.) Before it could award such contracts to the prime vendors, the Air Force was required by Public Law 105-261, section 346 (and as amended by Public Law 106-65, Section 336) to perform a cost-benefit analysis to demonstrate that the proposed approach would yield savings over an organic sustainment strategy. The Air Force asked RAND Project AIR FORCE (PAF) to conduct the required cost benefit study. In its analytic approach, the PAF study team defined notional organic sustainment organizations for purposes of comparison and compared the Air Force's current plans to use contractors to manage F-22 sustainment against plans for a gradual transition to notional organic alternatives. This report presents the portions of those findings that are available to the public. Where the numbers supporting the cost analysis or the results of the analysis are not available, the report presents the methodology used in the analysis without providing the results. The research and analysis reported here was sponsored by the Air Force Program Executive Officer for the F-22 Program, Office of the Assistant Secretary of the Air Force for Acquisition, Headquarters U.S. Air Force, and conducted within the Resource Management Program of PAF for a fiscal year (FY) 2007 project, F-22A Sustainment Cost/Benefit Analysis and Reparable Assessment Review. The project's technical monitor was Sue Dryden, Director of Sustainment and Logistics, F-22 Program Office, Aeronautical Systems Center, Wright-Patterson Air Force Base (AFB), Ohio.