10:49 GMT +316 August 2018
Listen Live
    King Stallion

    King Stallion Cost Growth Makes F-35 Budget Mayhem Look Tame

    © YouTube/Sikorsky/arronlee33
    Military & Intelligence
    Get short URL
    279

    The next-generation heavy-lift US Marine Corps helicopter doesn’t just have a super macho name — its costs are huge, too.

    There’s little reason to think this is the last time the Pentagon will come asking for more money for one of their grandiose defense programs. In an interview with Defense News, Col. Hank Vanderborght casually revealed that acquisition costs for the King Stallion helicopter jumped from $26.1 to $27.7 billion, basically chump change in comparison to the hundreds of billions budgeted for the Defense Department annually. 

    But for taxpayers, $1.6 billion is a big deal. With $1.6 billion, you could buy 200 million Chipotle burrito bowls. Vanderborght, however, is “not concerned” about the rampant cost growth.

    According to the Defense News report, Vanderborght disclosed that the the “average recurring flyaway cost” for the Pentagon to buy a King Stallion is purportedly stable at $87.1 million per unit, but government procurement officials told Sputnik that “unit costs” like this are perennially misleading — the Pentagon, and by proxy taxpayers, always cover big chunks of research and development costs, too. 

    If you factor in these extra costs and back out a new “unit cost” that includes all kinds of auxiliary expenses, the “program acquisition unit cost” soars all the way to $138.5 million per aircraft, Defense News noted

    In 2016, the Government Accountability Office produced a report on the King Stallion, a contract, of course, awarded to a Lockheed subsidiary, that found the unit price for the choppers was 14 percent higher than “baseline” estimates. On March 15, a Sputnik report pointed out that Congresswoman Niki Tsongas of Massachusetts said the unit cost had jumped again, and that now that Stallion would run 22 percent more per helo than the “baseline.”

    The Marines plan to acquire 200 of the aircraft. “That cost growth multiplied 200 times is a heck of a lot of money,” Tsongas said. Indeed, Sputnik calculated that it amounted to $5.4 billion in new costs. 

    “Even if there is no additional cost growth, it seems worth pointing out that $122 million per aircraft in 2006 dollars exceeds the [2017] cost of an F-35A aircraft for the Air Force by a significant margin,” she said. 

    “We’re doing a lot of good things to control it,” Vanderborght said, in reference to the costs of the program. “I think that the things we’re doing to control it are working,” he added. Unfortunately there’s not much evidence to show for it, despite Vanderborght’s best attempts to downplay the significance of the story. 

    Related:

    Pentagon Likely to Throw $29B at Lockheed for King Stallion Chopper
    Putin Presents Bahraini King With Stallion, Receives Sword in Return
    US Marines Axe Online Classes, Use Real-World Training After Nude Photo Scandal
    Ospreys Join US Marines for Six-Month Australian Deployment
    US Marines' New Chopper to Be More Expensive Than F-35 Disaster
    Tags:
    cost growth, GAO, Pentagon, Sikorsky, US Marines, Niki Tsongas
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment