Investigating the Desirability of Navy Aircraft Service Life Extension Programs

Abstract

Building on prior work on optimal replacement of aging aircraft, this paper presents three methodologies to evaluate prospective aviation Service Life Extension Programs (SLEPs) and applies these methodologies to US Navy F/A-18E/F data. While considerable uncertainty remains as to the values of key parameters (e.g. the cost of F/A-18E/F SLEPs), the preponderance of the evidence available at this juncture favors undertaking SLEPs on F/A-18E/Fs rather than replacing them with new Joint Strike Fighters.

Keywords:

• Service Life Extension Programs
• US Navy
• F/A-18E/F
• Aging Aircraft
• Aircraft Availability
• Joint Strike Fighter

JEL Codes:

• H43
• H56
• H57

Acknowledgments

The authors appreciate the research sponsorship of Arthur Barber, Deputy Director, Systems Analysis Division, N81B, Office of the Chief of Staff of Naval Operations. Lieutenant Commander Scott Russell was a very involved and enthusiastic point-of-contact. We are most appreciative of his extra efforts on our behalf. We also appreciate the assistance of Captain Eric Kaniut, Commander Michael Donnelly, Commander Fernando Maldonado, Commander Kevin Sandlin, Kevin McCarthy, and Todd Standard. The authors benefited from an informative visit to the Patuxent River Naval Air Station and the insights and assistance there of Patricia Behel, Tim Conley, R.L. Gage, Richard Ryan, and Laurence Stoll. Brent Boning of the Center for Naval Analyses shared a number of valuable insights. We received constructive reviews of an earlier version of this paper from Professor Michael Alles of Rutgers University and Frank Camm and Yool Kim of RAND. We also appreciate assistance and suggestions from Defence and Peace Economics editor Daniel Arce and two anonymous journal reviewers. RAND program director Philip Antón and RAND colleague Guy Weichenberg provided helpful comments on earlier versions of this paper. Lisa Bernard edited this paper. Rick Bancroft, Roy Gates, and Ravi Rajan provided valuable computer assistance. This research was sponsored by, but does not necessarily represent the views of, the US Navy. Of course, remaining errors are the authors’ responsibility.