Audit Report

01-31-2013
Acquisition Processes and Contract Management
Critical Information Needed to Determine the Cost and Availability of G222 Spare Parts (Redacted) (Project No. D2012-D000AT-0170.000)
DODIG-2013-040

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What We Did

We evaluated two contracts, as well as acquisition planning and program documentation, to determine whether the cost and availability of G222 spare parts will allow for continued sustainability of the aircraft. G222 Program Management Office (PMO) officials have obligated about $486.1 million on two G222 contracts, which includes $60.5 million for spare parts.

What We Found

G222 PMO officials have not determined the cost or availability of G222 spare parts. This occurred because NATO Training Mission– Afghanistan/Combined Security Transition Command – Afghanistan (NTM-A/CSTC-A) and G222 PMO officials did not effectively manage the G222 program. Specifically, NTM-A/CSTC-A and G222 PMO officials have not agreed on a course of action for the G222, and G222 PMO officials have not prepared a sustainment plan that considers cost. As a result, NTM-A/CSTC-A and G222 PMO officials may spend about $200 million in Afghanistan Security Forces Funds on spare parts for an aircraft that does not meet operational requirements, may be cost prohibitive to fly, and for which several critical spare parts to sustain the G222 are unavailable. This amount would be in addition to the $486.1 million that G222 PMO officials have already obligated for the program on two contracts. In addition, the aircraft flew only 234.2 of the required 4,500 hours from January through September 2012.

In an August 28, 2012, memorandum to NTM-A/CSTC-A and Air Force Life Cycle Management Center officials, we suggested they delay the procurement of spare parts until they determined whether to replace or use the G222 in a limited capacity, the service life of the G222, the impact of diminishing manufacturing sources, and the estimated sustainment costs. NTM-A/CSTC-A and Air Force Life Cycle Management Center officials agreed with our suggestions except for preparing a sustainment plan before obligating funds for the procurement of spare parts.

In December 2012, after draft report issuance, the Program Executive Officer for Air Force Mobility Programs, Air Force Life Cycle Management Center, notified the contractor that they would not take action to issue a new delivery order when the G222 follow-on sustainment support contract expires in March 2013. The Program Executive Officer for Air Force Mobility Programs, Air Force Life Cycle Management Center, also indicated the Afghan Air Force would use an alternate aircraft to meet the long-term medium airlift requirement. According to the Program Executive Officer for Air Force Mobility Programs, Air Force Life Cycle Management Center, if the program had continued through March 2022, as originally planned, it would have required $830 million, in addition to the about $200 million identified in the report, in sustainment costs, to include a significant amount for spare parts.

What We Recommend

We recommend that the Commanding General, NTM-A/CSTC-A, and the Assistant Secretary of the Air Force (Acquisition) determine whether to continue to use the G222. In addition, the Commanding General, NTM-A/CSTC-A must develop a long-term strategy if the G222 will continue to be used to meet the Afghan Air Force medium airlift requirement.

Because of actions taken by the Program Executive Officer for Air Force Mobility Programs, Air Force Life Cycle Management Center, after draft report issuance, we acknowledge that a sustainment plan is no longer necessary for the G222 program. Therefore, we have revised Recommendation 2 to recommend that the Program Executive Officer for Air Force Mobility Programs, Air Force Life Cycle Management Center, direct G222 PMO officials not to obligate any additional funds related to the about $200 million in Afghanistan Security Forces Funds, and not to expend funds previously obligated for spare parts until exhausting all available spare parts inventory, cannibalizing spare parts from other G222 aircraft, and when feasible, continuing the practice of using other aircraft to meet the medium airlift capability. G222 PMO officials should also develop an executable disposal plan for the G222 and determine whether any spare parts are needed to support the disposal plan.

Management Comments and Our Response

Comments provided by Commander, NATO Air Training Command-Afghanistan, on behalf of the Commanding General, NTM-A/CSTC-A were not responsive. However, because of actions taken since draft report issuance, no further comments on the final report are required. Comments provided by the Senior Military Assistant, Office of the Assistant Secretary of the Air Force (Acquisition), provided on behalf of the Assistant Secretary, were responsive and no additional comments are required. Comments provided by the Program Executive Officer for Air Force Mobility Programs, Air Force Life Cycle Management Center, were not responsive.


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