Originally
posted by
Suncrusher:
wasn't the final price tag pegged at over $40 billion? seems a bit much compared to the original budget allocated for this purchase
The cost estimate went up because they adjusted the lifecycle of the planes. Originally they were only costing the planes to be in operation for 26 years. Later they revised it to 36 years.
So yes, it is more expensive to fuel and maintain planes for 36 years than it is for 26 years. But the fact that they get 10 more years use out of the planes increases the value of the project because it pushes forward the timeline requirements for replacing that equipment with new planes by 10 years.
Also, probably most importantly, although the total lifecycle costs were revised upwards by $10 billion, since the lifecycle of the planes was increased by 10 years, the average annual cost associated with procuring and operating the planes over their life cycle WENT DOWN with the latest cost estimate revision.
I repeat, the AVERAGE ANNUAL COST OF THE PROGRAM DECREASED.
Yes, so we scuttled our fighter jet purchase because it turned out that we were going to get to keep them/use them longer than we originally thought.
So, as I said.... stupid.