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Air and Land Forces Subcommittee Chairman Neil Abercrombie Opening Statement Hearing on the F-22 Program

November 19, 2008

"This afternoon, we welcome Mr. John J. Young, Jr., the Undersecretary of Defense for Acquisition, Technology and Logistics, and Mr. David M. Van Buren, Principal Deputy Assistant Secretary of the Air Force for Acquisition and Management to provide testimony on the F-22 program.

"The primary issue we plan to address in this hearing is the Department of Defense's apparent intent to not fully implement Section 134 of the National Defense Authorization Act for Fiscal Year 2009.

"Section 134 authorizes the obligation of up to $140 million to sustain F-22 long-lead component production from November until March, to preclude program cost growth, and to avoid prejudicing a decision of the incoming administration on whether to procure additional F-22 aircraft, beyond the 183 now planned.

"Early this year, Secretary Gates and other officials in the Office of the Secretary of Defense (OSD) testified that they wished to defer a final decision on F-22 production line closure to the next administration. However, the Department's budget request for fiscal year 2009 did not include either advance procurement for additional F-22s in fiscal year 2010 to sustain production, or funds to shut down the F-22 production line.

"We were told by the Air Force that because the Office of the Secretary of Defense did not provide advance procurement to sustain advance procurement of F-22 components that the cost impact to the program would be $500 million if the decision was made in March of 2009, to proceed with additional F-22 aircraft procurement.

"Since the Office of the Secretary of Defense did not provide the funding, Congress did, authorizing and appropriating $523 million for the advance procurement in the fiscal year 2009 National Defense Authorization Act of 20 additional F-22s in fiscal year 2010.

"The Authorization Act limited the obligation of this $523 million to $140 million until the next President certifies, by March 1, 2009, to the congressional defense committees that either more F-22s or shutting down the F-22 production line is in the national interest of the United States.

"On October 14, the authorization act was signed into law by President Bush. Shortly thereafter, the Air Force submitted an acquisition strategy proposal to the Office of the Secretary of Defense to obligate the $140 million, to implement section 134, and support a November 27th contract award, but that request was denied.

"On November 10th, Secretary Young, in an acquisition decision memorandum, directed the Air Force to proceed with advance procurement of only four aircraft, with an option for 16 aircraft, after January 21, 2009, and limited obligation to only $50 million, asserting that this would have little or no cost impact to the program.

"The Air Force had informed the subcommittee in July that $140 million would be required by November to avoid a cost impact to the program if a decision were to be made in March to proceed with additional F-22 procurement. The Office of the Secretary of Defense, as mentioned, now indicates that instead of $140 million, $50 million is sufficient.

"The Air Force currently estimates that with only $50 million for obligation in November, that this will increase the program cost by $200-$500 million, if the decision is made to buy 20 additional aircraft, depending on when the decision is made, after January 21.

"Conversely, OSD indicates there will be little or no additional cost.

"We hope to find out today why OSD declines to fully implement Section 134 of the National Defense Authorization Act, to preclude the expenditure of up to $500 million in additional costs, if the new administration decides to proceed with F-22 procurement."