Decision nears on multiyear F/A-18 deal

The Defense Department hopes to tell Congress sometime in the next few weeks whether it will proceed with a multiyear procurement contract for F/A-18 aircraft for the Navy or buy the multirole fighter planes under annual contracts, Navy Secretary Ray Mabus said Wednesday.

At a breakfast with reporters, Mabus said the Navy and the Pentagon's Cost Assessment and Program Evaluation office still are analyzing whether an offer proposed in February by Boeing Co., the plane's maker, will achieve the necessary savings to proceed with the multiyear deal.

"Ten percent [cost savings] is the nominal threshold that [Defense] Secretary Gates has put forward as the target that we're shooting for," Mabus said. "Any more would be fine," he quipped.

A multiyear commitment would cover the 124 F/A-18E/F Super Hornet fighter jets and E/A18G electronic attack aircraft the Defense Department plans to buy between fiscal 2010 and fiscal 2013, which is 35 aircraft more than was planned a year ago. The planes are based on the same airframe.

Lawmakers last year gave the Defense Department the go-ahead to pursue a multiyear procurement contract for F/A-18E/F Super Hornet fighters and E/A-18G Growler electronic attack aircraft, but set a March 1 deadline for officials to notify Congress whether they planned to do so.

Deputy Defense Secretary William Lynn asked for, and received, additional time to review the proposal, which Boeing officials have said does meet the 10 percent threshold.

Congress has not set a deadline for the Pentagon's response, but the fiscal 2010 defense authorization bill requires the Navy to enter into the multiyear contract for the aircraft by May 1. But the law allows the Navy secretary to buy more time by notifying the congressional defense committees for an extension.

Mabus said Wednesday he would support a multiyear contract if it yields adequate savings.

"I certainly hope it does," he said. "I'd like to save that amount of money going forward on those airplanes that we're already planning to buy."

The Navy's fiscal 2011 budget request, sent to Congress Feb. 1, includes $1.9 billion to buy 22 Super Hornets and $1.1 billion for 12 Growlers. In fiscal 2012, the Navy plans to buy 24 more Growlers and one Super Hornet, with 25 more Super Hornets in fiscal 2013.