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entitled 'Military Aircraft: Information on Air Force Aerial Refueling 
Tankers' which was released on June 24, 2003.

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Testimony:

Before the Subcommittee on Projection Forces, Committee on Armed 
Services, House of Representatives:

United States General Accounting Office:

GAO:

For Release on Delivery Expected at 2:00 p.m. EDT:

Tuesday, June 24, 2003:

Military Aircraft:

Information on Air Force Aerial Refueling Tankers:

Statement of Neal P. Curtin, Director Defense Capabilities and 
Management:

GAO-03-938T:

GAO Highlights:

Highlights of GAO-03-938T, a testimony before the Subcommittee on 
Projection Forces, Committee on Armed Services, House of 
Representatives

Why GAO Did This Study:

Both the Congress and the Department of Defense are concerned about 
the age of the U.S. aerial refueling fleet and its potential impact on 
the military services’ ability to meet operational requirements. 
Aerial refueling provides a key capability that is essential to the 
mobility of U.S. forces. At present, the Air Force is in the early 
stages of planning for modernizing its aging fleet.

In this testimony, GAO was asked to present its initial observations 
on 

(1) the status of the KC-135 fleet, including its age, projected life 
limits, and mission capable rates (i.e., the percent of time on 
average that the aircraft are available to perform their assigned 
mission); and 

(2) Air Force aerial refueling requirements.

What GAO Found:

The Air Force fleet of KC-135 aircraft (which, at 543 aircraft, 
represents the bulk of U.S. refueling capability) is an average of 
about 42 years in age. The Air Force projects that the KC-135 aircraft 
have between 36,000 and 39,000 lifetime flying hours; according to the 
Air Force, only a few KC-135s are projected to reach these limits 
before 2040, although at that time some of the aircraft would be close 
to 80 years old. KC-135s are being flown an average of about 435 hours 
per year, on average, since September 2001. As the fleet has aged, the 
aircraft have become expensive to maintain, averaging about $4.6 
million per year in total operations and support costs for the least 
capable aircraft.  Those costs include personnel, fuel, maintenance, 
and spare parts. KC-135s in the active duty forces are generally 
meeting the 85 percent goal for mission capable rates; rates were 
lower for aircraft in the reserve forces, ranging from 70 to 78 
percent. The Air Force Reserve and Air National Guard operate over 
half of the KC-135s.

In a 1996 report, GAO pointed out that the aging fleet of KC-135s 
would eventually need replacement and that the Department of Defense 
needed to start planning for the recapitalization of the fleet. At 
that time, the Department responded to our report saying that the 
current fleet would meet requirements “for the foreseeable future” and 
planned to begin procurement of new tankers around fiscal year 2013. 
In 2000, the Air Force conducted a study called the Tanker 
Requirements Study-05, but it was never formally completed. Therefore, 
DOD does not have a current, validated study on which to base the size 
and composition of either the current fleet or a future aerial 
refueling force. There is no effort currently under way to update the 
Air Force study or to conduct an analysis of alternatives for tanker 
modernization. The Air Force indicated recently that it plans to 
conduct a new Tanker Requirements Study in the fiscal year 2004-2006 
time frame.

www.gao.gov/cgi-bin/getrpt?GAO-03-938T.

To view the full product, including the scope
and methodology, click on the link above.
For more information, contact Neal P. Curtin, (202) 512-4914 or 
curtinn@gao.gov.

[End of section]

Mr. Chairman and Members of the Subcommittee:

I appreciate the opportunity to appear before you today to discuss the 
important subject of aerial refueling for military aircraft. Aerial 
refueling provides a key capability in enhancing the mobility of U.S. 
forces. The Air Force is beginning planning for the modernization of 
its aging aircraft fleet.

As you requested, my statement focuses on the following issues:

* KC-135 fleet status, including mission capable rates, age, and 
projected life limits; and:

* Air Force aerial refueling requirements, including GAO's observations 
and the results of GAO's 1996 Air Force air refueling study.

My statement is based on two published GAO reports[Footnote 1] and on 
our on-going work for the Readiness Subcommittee of the House Armed 
Services Committee. Because of the relatively short notice for the 
hearing, I have kept my prepared statement short, focusing on some key 
issues that will help update you with basic background information on 
the tanker fleet, as your office had requested. As you know, DOD is in 
the final stages of negotiating a lease agreement with Boeing for 100 
new 767 aircraft that will be modified for use as tanker aircraft and 
replace part of the current fleet. Because details of that agreement 
have not been made public or provided to us, I am not in a position 
today to discuss issues related to the lease.

Status of Aerial Refueling Fleet:

While numerous military aircraft provide refueling services, the bulk 
of U.S. refueling capability lies in the Air Force fleet of 59 KC-10 
and 543 KC-135 aircraft. These are large, long-range aircraft that have 
counterparts in the commercial airlines, but which have been modified 
to turn them into tankers. The KC-10 is based on the DC-10 aircraft, 
and the KC-135 is similar to the Boeing-707 airliner. The KC-10 
aircraft are relatively young, averaging about 20 years in age. 
Consequently, much of the focus on modernization of the tanker fleet is 
centered on the KC-135s. These were built in the 1950s and 1960s, and 
now average about 42 years in age. Because of their large numbers, they 
are the mainstay of the refueling fleet, and successfully carrying out 
the refueling mission depends on the continued performance of the KC-
135s. Thus, recapitalizing this fleet of KC-135s will be crucial to 
maintaining aerial refueling capability, and it will be a very 
expensive undertaking.

Let me provide some additional background information on the KC-135 
fleet:

* There are two basic versions of aircraft, designated the KC-135E and 
KC-135R. The R model aircraft have been re-fitted with modern engines 
and other upgrades that give them an advantage over the E models. The E 
model aircraft on average are about 2 years older than the R models, 
and the R models provide more than 20 percent greater refueling 
capacity per aircraft.

* The E models are located in the Air National Guard and Air Force 
Reserve. Active forces have only R models. Over half the KC-135 fleet 
is located in the reserve component.

* While the KC-135 fleet averages over 40 years in age, the aircraft 
have relatively low levels of flying hours. The Air Force projects that 
E and R models have lifetime flying hours limits of 36,000 and 39,000 
hours, respectively. According to the Air Force, only a few KC-135s 
would reach these limits before 2040, but at that time some of the 
aircraft would be about 80 years old.

* Flying hours for the KC-135s averaged about 300 hours per year 
between 1995 and September 2001. Since then, utilization is averaging 
about 435 hours per year.

* According to Air Force data, the KC-135 fleet had a total operation 
and support cost in fiscal year 2001 of about $2.2 billion. The older E 
model aircraft averaged total costs of about $4.6 million per aircraft, 
while the R models averaged about $3.7 million per aircraft. Those 
costs include personnel, fuel, maintenance, modifications, and spare 
parts.

By most indications, the fleet has performed very well during the past 
few years of high operational tempo. Operations in Kosovo, Afghanistan, 
Iraq, and here in the United States in support of Operation Noble Eagle 
were demanding, but the current fleet was able to meet the mission 
requirements. Approximately 150 KC-135s were deployed to the combat 
theater for Operation Allied Force in Kosovo, about 60 for Operation 
Enduring Freedom in Afghanistan, and about 150 for Operation Iraqi 
Freedom. Additional aircraft provided "air bridge" support for movement 
of fighter and transport aircraft to the combat theater, for some long-
range bomber operations from the United States, and, at the same time, 
to help maintain combat air patrols over major U.S. cities since 
September 11, 2001.

Data on the mission capable rates for the KC-135 fleet are shown in the 
following table. Mission capable rates measure the percent of time on 
average that the aircraft are available to perform their assigned 
mission. The goal for KC-135s is an 85 percent rate; the table shows 
the number of aircraft in the different components along with the 
mission capable rates for the period October 2001 through March 2002.

Table 1: Mission Capable Rates for KC-135 Aircraft:

Component: Active; Number of aircraft: 245; Mission capable rate 
(percent): 85.

Component: Reserve R models; Number of aircraft: 52; Mission capable 
rate (percent): 78.

Component: National Guard R models; Number of aircraft: 115; Mission 
capable rate (percent): 78.

Component: Reserve E models; Number of aircraft: 16; Mission capable 
rate (percent): 70.

Component: National Guard E models; Number of aircraft: 115; Mission 
capable rate (percent): 76.

Source: Air Force data.

[End of table]

For comparison purposes, the KC-10 fleet is entirely in the active 
component, and the 59 KC-10s had an average mission capable rate during 
the same period of 81.2 percent.

The rest of the DOD refueling fleet consists of Air Force HC-and MC-130 
aircraft used by special operations forces, Marine Corps KC-130 
aircraft, and Navy F-18 and S-3 aircraft. However, the bulk of 
refueling for Marine and Navy aircraft comes from the Air Force KC-10s 
and KC-135s. These aircraft are capable of refueling Air Force and 
Navy/Marine aircraft, as well as some allied aircraft, although there 
are differences in the way the KC-10s and KC-135s are equipped to do 
this.

DOD's Tanker Requirements and GAO's 1996 Air Force Refueling Study:

In our 1996 report, we pointed out that the aging fleet of KC-135s 
would eventually need replacement and that DOD needed to start planning 
for the recapitalization of the fleet. We recommended that DOD consider 
looking at dual-use aircraft--an aircraft that could be used as a 
tanker or as a cargo carrier, depending on mission requirements. The 
KC-10 fleet is actually used in this way now. In response to our 
recommendation, DOD agreed that it would consider such an option when 
it did a comprehensive analysis of tanker requirements and 
alternatives. However, the department also stated that the current 
fleet would meet requirements for "the foreseeable future." Moreover, 
in its response to our report, DOD stated that "While the KC-135 is an 
average of 35 years old, its airframe hours and cycles are relatively 
low. With proper maintenance and upgrades, we believe the aircraft may 
be sustainable for another 35 years." At the time of our report, the 
Air Force had deferred the start of KC-135 replacement from fiscal year 
2007 to 2013. In discussions with the Air Force last year, officials 
indicated that they had moved up that timetable to fiscal year 2009.

DOD does not have a current, validated study on which to base the size 
and composition of either the current fleet or a future aerial 
refueling force. An Air Force study called Tanker Requirements Study-05 
(TRS-05) was conducted in 2000, but it was never formally completed nor 
were its preliminary results released. Drafts of the study identified a 
shortfall in tanker capability, but the study was based on the old 
strategy of supporting two major theater wars. There is no effort under 
way that we know of to update the TRS-05 study and release it or to 
conduct an analysis of alternatives for tanker modernization. The Air 
Force indicated recently that it planned to conduct a new Tanker 
Requirements Study in the fiscal year 2004-2006 time frame.

Mr. Chairman, this concludes my prepared statement. I would be happy to 
respond to any questions you or other Members of the Subcommittee may 
have at this time.

Contacts and Acknowledgments For future contacts regarding this 
testimony, please contact me at (202) 512-4914 or Brian Lepore at (202) 
512-4523. Individuals making key contributions to this testimony 
included Joseph J. Faley, Kenneth W. Newell, Tim F. Stone, and Susan K. 
Woodward.

FOOTNOTES

[1] U.S. General Accounting Office, Air Force Aircraft: Preliminary 
Information on Air Force Tanker Leasing, GAO-02-724R (Washington, D.C.: 
May 15, 2002) and U.S. Combat Airpower: Aging Refueling Aircraft Are 
Costly to Maintain and Operate, GAO/NSIAD-96-160 (Washington, D.C.: 
August 8, 1996).