Notes from the Sausage Factory: AF May Accelerate C-130J
Procurement to Control F-22 Costs!!!! 

October 27, 1998

Comment: #205

Discussion Thread:  #s 154 and 202, 203, 204

Reference:

[1] Vago Muradian, "AIR FORCE CONSIDERS SPEEDING C-130J BUY TO CONTROL F-22 COST," Defense Daily, 23 October 1998.  Excerpts attached.

Vago Muradian reports in Reference #1 that the Washington POPs (Plutocrats on the Potomac) want to use the over-priced C-130J (see #154 & 204) to control the F-22's costs! With thinking like this, no one should be surprised when infantry captains commanding companies in first-to-fight battalions get mad because they do not have enough 60mm mortar ammunition to train with.

If this report is correct, the F-22 is in big trouble.

Chuck Spinney

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Reference #1

Defense Daily
23 October 1998

AIR FORCE CONSIDERS SPEEDING C-130J BUY TO CONTROL F-22 COST

By Vago Muradian

Excerpts:

"Lockheed has advised us, given our low number of orders over the next four years and none for next year, that they might have to close the C-130J line until we begin our currently planned program in 2004," a senior government official told Defense Daily yesterday. "If Lockheed does close the C-130 line until Air Force orders pick up in 2004, there may be upward price pressure on the F-22 as some of the plant overhead attributed to the C-130 migrates to the F-22 program. We want to avoid that."

 ...

"Since both aircraft are built in the same plant, any near-term increase in production of the C-130J would obviously have a positive effect on the F-22 program, because the cost of operating the plant would be spread over a large production base. This could help the Air Force achieve significant savings on both programs in the short and the long term ." Lee Whitney, a Lockheed Martin spokesman, told Defense Daily.

...

Should the Air Force decide to speed the purchase, however, it would constitute a sharp reversal given the service has publicly resisted the acquisition of the C-130J for a number of years.

...

In fact, some senior Air Force officials have complained that the C-130J has been forced on the service against its wishes.

In FY '99, for example, the Air Force asked for one C-130J but Congress added four to the request.

...

"We would be looking for at least a 10 percent reduction in the price of the aircraft," he added. "In exchange for the Air Force accelerating the program and helping Lockheed, and ourselves in the process--this is a two way street--we believe a more attractive price would be very appropriate."