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Study: One Raptor deal would save millions

Using a single three-year contract to buy 60 F-22A fighters will save the Air Force hundreds of millions of dollars, according to a study released Friday by Rand Corp., a federally funded think tank.

The study found that using one multiyear contract rather than three separate annual contracts will save the Air Force between $270 million and $640 million, with the most likely savings being about $410 million, the report said.

The report appears to vindicate the Air Force, which pushed hard to get the multiyear deal approved despite reservations by congressional heavyweights such as Sen. John McCain, R-Ariz.

Congress approved the multiyear buy as part of the fiscal 2007 National Defense Authorization Act and the 2007 Appropriations Act. But Congress also mandated that Rand conduct a study of the possible savings achieved by the deal.

Based on the $410 million savings figure, Rand researchers estimated the agreement would result in a 4.5 percent savings on the cost of acquiring 60 airplanes, 133 engines and spare parts scheduled to be purchased over the next three years.

The savings would be achieved through efficiencies such as improving competition among parts suppliers, better manufacturing scheduling, and eliminating the need to prepare new proposals for future one-year contracts, according to the report.

The Air Force expects to spend about $10 billion to purchase an additional 60 F-22s and related equipment over the next three years.