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There Will Be Raptor Savings

June 30, 2007— Asked by Congress to conduct an independent review of the Air Force’s proposed multiyear procurement plan to purchase 60 new F-22A Raptors and their engines over Fiscal 2007-09, Rand analysts confirmed that there would be substantial savings. They also found that the savings could be almost twice what the Air Force projected. In testimony last year, Air Force Secretary Michael Wynne said the service calculated the savings at around $225 million. The middle-of-the-road estimate provided by Rand’s three alternative cost improvement curve assumptions is $411 million, compared to purchases using three single-year contracts. The debate last year over the Air Force proposal was heated—with Sen. John McCain (R-Ariz.) serving as one of the most vocal critics—however, the plan did pass but the 2007 defense authorization bill carried a provision for this additional review. (You can find the entire Rand report here.)