Mark A. Lorell

This appendix discusses historical implementation of multiyear procurement (MYP) and block buy (BB) contracts and how they compare. As context for an analysis of potential savings in an F-35 BB contract, it outlines the methodology and data sources for analyzing historical MYP and BB contracts and provides a high-level overview of trends observed across the case studies along with in-depth discussion of more-recent multiyear program case studies.

This report evaluates four recent Air Force Major Defense Acquisition Programs with low cost growth and compares and contrasts their key characteristics to the six programs evaluated with extreme cost growth from a companion RAND Corporation report, which identified the main characteristics of six recent U.S. Air Force acquisition programs with extreme cost growth.

Development of the F-35 Joint Strike Fighter was shared by the United States (for the U.S. Air Force, Navy, and Marine Corps), Australia, Canada, Denmark, Italy, the Netherlands, Norway, Turkey, and the United Kingdom. In 2012, these countries agreed to manage F-35 sustainment assets as a global pool. This report reviews other international military aircraft spares pooling programs from the 1950s to the present to identify lessons learned.

Examines conditions present in six U.S. Air Force Major Defense Acquisition Programs (MDAPs) experiencing extreme cost growth, using case study analysis. This report is a companion to Air Force Major Defense Acquisition Program Cost Growth Is Driven by Three Space a Program and the F-35: Fiscal Year 2013 President s Budget Selected Acquisition Reports (RR-477-AF, 2014), which analyzed cost growth trends in current U.S. Air Force MDAPs."

This report analyzes costs and savings of joint aircraft acquisition programs, whether historical joint aircraft programs have saved Life Cycle Cost (LCC) over single-service programs, whether the Joint Strike Fighter is on track to achieving the originally anticipated LCC savings, and the implications of joint fighter programs for the industrial base and for operational and strategic risk.

These appendixes explain the methodology used in an analysis of the costs and savings of joint aircraft acquisition programs. They illustrate calculations for theoretical maximum joint aircraft savings in acquisition and in operations and support, historical joint aircraft cost-growth premiums, savings needed to offset premiums, and two cost-comparison methodologies.

Why have the costs of acquiring space systems been so high? What are the sources of the problem? To answer these questions, RAND undertook an extensive study of two space systems - the Space Based Infrared SystemHigh (SBIRS) and the Global Positioning System (GPS).This title analyzes the reason for the comparatively high growth in the cost of space systems by means of an in-depth study of two systems: SBIRS-High and GPS.

This monograph presents findings of a RAND Project AIR FORCE research project documenting lessons learned by the U.S. Air Force (USAF) and other Department of Defense (DoD) cost analysis and acquisition community members from the implementation of evolutionary acquisition (EA) strategies for major Air Force defense space acquisition programs. In May 2003, DoD mandated EA strategies relying on spiral development as the preferred approach to satisfying operational needs.

Analysis of findings from case studies and structured interviews focused on determining the potential benefits and challenges of using price-based acquisition for Department of Defense procurement of major military-unique systems. Price-based acquisition (PBA), a major acquisition reform measure being used by the Department of Defense (DoD), is claimed to reduce costs and enhance acquisition efficiency. This study presents findings based on structured interviews and case studies to determine whether the claims are true and what potential benefits PBA may hold for DoD.

Drawing on primary and secondary sources on the aircraft industry, this report provides a brief survey of industry structure, innovation, and competition in the U.S. fixed-wing combat aircraft industry from its earliest days to the present. It supports a much larger research effort examining the future of the structure, innovation, and competition of the U.S. military aircraft industrial base that responds to congressional concerns about that future.

An examination of the effects of consolidation and globalization on the aerospace defense industry. The increasing consolidation of the defense aerospace industry, brought about by post-Cold War reductions in defense authorizations, has led to the proliferation of cross-border relationships between U.S. and European firms. This report examines aerospace industry globalization trends with a view toward determining how the U.S. Air Force can best exploit such trends while minimizing their risks. It concludes that further research must be done to ascertain how the advantages of globalization, such as increased competition and interoperability, can best be achieved without compromising security concerns. [AF]