The Air Force Has Not Compared Costs Of Alternative Ways To Replace Ct-39 Aircraft V. PLRD-83-18

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PLRD-83-18 1 (1982-11-22)

handle is hein.gao/gaobabmsl0001 and id is 1 raw text is:

.n UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON, D.C. 20548

PROCUR EMENT, LOGISTICS,
AND REACINESS DIVISION November 22, 1982

B-209682

The Honorable Ted Stevens EE22,
.o~o~ab1RELEASED
Chairman, Subcommittee on Defense
Committee on Appropriations
United States Senate

Dear Mr. Chairman:

Subject: The Air Force Has Not Compared Costs of
'Alternative Ways to Replace CT-39 Aircraft
(GAO/PLRD-83-18)

Your October 1, 1982, letter requested that we verify
the (1) projected cost savings associated with the lease of
replacements for CT-39 aircraft, (2) cost to phase out the
existing CT-39 fleet, and (3) personnel savings from converting
from Air Force to contract maintenance. You also asked us to
comment on the prudence of leasing replacement aircraft in
lieu of purchase. Your office told us that the legality of
multiyear aircraft leasing and the underlying requirements for
CT-39 aircraft were also of concern.

In a September 20, 1982, letter to Senator Dole, the Secre-
tary of the Air Force described the Air Force's proposal to
lease off-the-shelf, commercially available aircraft to replace
its CT-39 operational support aircraft. He stated the existing
fleet of more than 115 small, business-type jet aircraft is over
20 years old and is nearing the end of its useful life. He pro-
posed a competitive lease of replacement aircraft through a
5-year contract, with up to 3 option years and an option to buy
at the end of the lease period. He anticipated manpower and
operating cost savings on the order of $100 million over the life
of the contract. However, he stated that specific statutory
authority would be required before the Air Force could issue a
request for proposal, and requested such authority for the fiscal
year 1983 appropriation.

The Air Force has not established that its CT-39 aircraft
must be replaced in 1983, and Air Force data is not sufficient to
conclude that its lease proposal is the least costly alternative

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