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Intratheater Airlift: Information on the Air Force's C-130 Aircraft

(Letter Report, 04/21/98, GAO/NSIAD-98-108).

Pursuant to a congressional request, GAO reviewed the Air Force's C-130
program, focusing on: (1) the mission of the current and planned C-130
fleet; (2) the C-130 requirements for the Air National Guard and Air
Force Reserve; (3) the C-130 procurement history in the Guard and
Reserve units; (4) the Air Force's plans for retiring excess C-130s in
the Mastering Station Plan (MSP); (5) whether the Air Force's process
for retiring C-130 aircraft when replacement aircraft become available
is effective; (6) what the Air Force C-130J requirement is and what
other alternatives were considered; and (7) the C-130J logistics support
funding shortfall.

GAO noted that: (1) the current C-130 fleet is comprised of 12 different
variants and the missions vary with each variant; (2) while most of the
current fleet is comprised of combat delivery aircraft, many of the
C-130 variants perform specialized missions; (3) at the time of GAO's
review, peacetime and wartime requirements for the Air National Guard
and Air Force Reserve combat delivery aircraft totalled 264 aircraft;
(4) requirements for the Guard and Reserves' C-130 combat delivery
aircraft are established in the Air Force's C-130 MSP, which was
delivered to Congress in 1997; (5) for the past 21 years with the
exception of five aircraft, Congress has directed the procurement of
C-130s for the Air National Guard and Air Force Reserve units; (6)
according to C-130 program officials, the Air Force has not requested
these aircraft because aircraft in those units have many years of
service life remaining; (7) about 50 C-130 aircraft were identified in
the Air Force MSP as excess over requirements; (8) thirty of these were
in the Air National Guard and the Air Force Reserve units and the
remaining were in the active duty force; (9) reductions in the Air
National Guard were expected to be 24 aircraft and the Air Force Reserve
Command units were to be reduced by 6 aircraft; (10) according to Air
Force officials, these reductions were not made; (11) although the Air
Force has a process for governing the retirement of its aircraft, it has
not been able to implement the process effectively; (12) as a result,
some C-130 aircraft have been retired with substantial service life
remaining and shortly after the aircraft had been modified; (13) as of
March 1998, the Air Force had not decided how many C-130Js will be
required; (14) the Air Force has been requesting one or two C-130Js per
year since 1996 for the active force; (15) the remaining J acquisitions
were congressionally-directed buys for the Guard and Reserve; (16)
regarding alternatives to the J, GAO was told that alternatives have
been evaluated and rejected in the past; and (17) Air Force C-130
officials stated that funding shortfalls for the C-130 fleet have
historically been a problem, primarily because Congress has added C-130
aircraft to their budget without providing the needed funding for
logistics support.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-98-108
     TITLE:  Intratheater Airlift: Information on the Air Force's C-130 
             Aircraft
      DATE:  04/21/98
   SUBJECT:  Air Force procurement
             Tactical air forces
             Military aircraft
             Military airlift operations
             Military inventories
             National Guard
             Armed forces reserves
IDENTIFIER:  C-130 Aircraft
             EC-130 Aircraft
             EC-130J Aircraft
             C-130J Aircraft
             Hercules Aircraft
             
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Cover
================================================================ COVER


Report to the Honorable
John McCain, U.S.  Senate

April 1998

INTRATHEATER AIRLIFT - INFORMATION
ON THE AIR FORCE'S C-130 AIRCRAFT

GAO/NSIAD-98-108

Intratheater Airlift

(707196)


Abbreviations
=============================================================== ABBREV

  ABCCC - Airborne Battlefield Command and Control Center
  ACC - Air Combat Command
  AMC - Air Mobility Command
  DOD - Department of Defense
  DOT&E - Director of Operational Test and Evaluation
  FAA - Federal Aviation Administration
  ICS - Interim Contractor Support
  JCS - Joint Chiefs of Staff
  LFT - Live Fire Test
  MSP - Master Stationing Plan
  NSF - National Science Foundation

Letter
=============================================================== LETTER


B-274598

April 21, 1998

The Honorable John McCain
United States Senate

Dear Senator McCain: 

This report responds to your August 1997 request for information on
the Air Force's C-130 program.  Specifically, you asked us to answer
the following questions. 

  -- What is the mission of the current and planned C-130 fleet? 

  -- What are the C-130 requirements for the Air National Guard and
     Air Force Reserve? 

  -- What is the C-130 procurement history in the Guard and Reserve
     units? 

  -- What are the Air Force plans for retiring excess C-130s in the
     Master Stationing Plan (MSP)? 

  -- Is the Air Force's process for retiring C-130 aircraft when
     replacement aircraft become available effective? 

  -- What is the Air Force C-130J requirement and what other
     alternatives were considered? 

  -- What is the C-130J logistics support funding shortfall? 


   BACKGROUND
------------------------------------------------------------ Letter :1

The C-130 Hercules aircraft is a medium-range, tactical airlift
aircraft designed primarily for transporting personnel and cargo. 
The aircraft was originally flown in 1954 and has been under
continuous production ever since.  The Air Force currently has
approximately 700 C-130s of various configurations in its current
C-130E and H fleet.  The average age of the active duty C-130 fleet
is over 25 years old, while the average age of the Guard and Reserve
C-130s is about 15 years old.  These aircraft are under the
management and control of the Air Mobility Command (AMC)\1 and are
operated by the active Air Force, the Air National Guard, and the Air
Force Reserve. 

The Air Force has just begun buying a new J model C-130.  Lockheed
Martin Corporation is developing the J aircraft as a commercial
venture and expects it to (1) lower the cost of ownership of the
fleet and (2) climb higher and faster, fly at higher cruise speeds,
and take off and land in a shorter distance than the existing fleet. 
The J will have the same structural characteristics as previous C-130
models; however, it differs in that it includes, among other things,
an advanced integrated digital avionics system, a new engine and
composite propellers, a heads-up display, and a redesigned flight
station to facilitate operation by a three-man versus a five-man
crew.  The J can also be bought in a stretched version.\2

The aircraft is currently undergoing developmental tests and the
Federal Aviation Administration (FAA) certification process is
expected to end in June 1998.  See appendix I for an illustration of
the C-130J aircraft, along with the contractor's comparison of the
capabilities for the C-130E, H, and J.  At the time of our review, 23
Air Force C-130Js were on contract, with delivery of the first
aircraft initially scheduled for December 1997.  The schedule has
slipped, however, and delivery of the first aircraft is now scheduled
for October 1998.  The schedule has been delayed due to technical
problems and the pending FAA certification.\3

The following sections provide the answers to each of your specific
questions.  Our scope and methodology for obtaining this information
are discussed in appendix II. 


--------------------
\1 The C-130 fleet was under the control of the Air Combat Command
(ACC) from October 1993 until April 1997 when it was reassigned to
AMC. 

\2 The stretched version, the C-130J-30, provides additional room in
the aircraft so that more pallets or equipment can be carried. 

\3 The C-130J aircraft is a military version of a commercial variant
of the C-130J, which is called the 382J.  The 382J must be FAA
certified, and that certification must be completed before the
military C-130Js can be delivered to the Air Force. 


   WHAT IS THE MISSION OF THE
   CURRENT AND PLANNED FLEET? 
------------------------------------------------------------ Letter :2

The current C-130 fleet is comprised of 12 different variants and the
missions vary with each variant.  While most of the current fleet is
comprised of combat delivery aircraft, many of the C-130 variants
perform specialized missions. 

The combat delivery C-130 fleet, designated as C-130Es and C-130Hs,
is used in a wide variety of wartime and peacetime missions.  In
wartime, the C-130 combat delivery aircraft primarily performs the
intratheater portion of the airlift mission, leaving the long-range
intertheater transport mission to larger aircraft such as the C-5 and
C-17.  These C-130s primarily provide rapid transportation of
personnel or cargo for delivery by parachute to a designated drop
zone, or by landing at austere locations within the conflict area. 
These aircraft are also the primary aeromedical evacuation aircraft
in a conflict. 

In peacetime, the combat delivery C-130 is used for training flights,
regularly scheduled channel operations,\4 and special assignment
missions.\5 It is also used in fire fighting and humanitarian relief
missions.  For example, it has been used to airlift heavy equipment
into remote areas of other countries to build airports and roads, and
transport local goods. 

In addition to the missions performed by the basic combat delivery
C-130 aircraft, 11 other variants perform specialized missions. 
These missions include (1) weather reconnaissance, performed by the
WC-130 aircraft; (2) special communication missions, performed by the
EC-130 aircraft; and (3) search and rescue, performed by the HC-130
aircraft. 

The 12 different C-130 models that are currently in the fleet and
their respective missions are summarized in table 1. 



                                Table 1
                
                  Summary of Air Force C-130 Aircraft
                  Missions for Models Currently in the
                                 Fleet

                    (Totals as of January 12, 1998)

                                    Tota
                                       l
Model                                no.  Primary missions
----------------------------------  ----  ----------------------------
AC-130H/U"Spectre"/                   21  Close air support, air
 "Spectre" Gunship                         interdiction, and armed
                                           reconnaissance
C-130E "Hercules"\a                  236  Intratheater airlift and
                                           airdrop; can operate from
                                           rough dirt strips and is
                                           used for delivering troops
                                           and equipment by parachute
                                           into hostile areas
C-130H "Hercules"\a                  286  Intratheater airlift and
                                           airdrop; can operate from
                                           rough dirt strips and is
                                           used for delivering troops
                                           and equipment by parachute
                                           into hostile areas
EC-130E "ABCCC"                        7  Airborne battlefield command
                                           and control center
EC-130E "Commando Solo"                6  Psychological warfare--
                                           airborne radio and TV
                                           broadcast
EC-130E "Senior Hunter"                2  Airlift for the Air Force
                                           Intelligence Command,
                                           called the Senior Scout
                                           mission
EC-130H "Compass Call"                15  Jamming/electronic warfare
HC-130                                30  Search and rescue
LC-130H                                7  Ski-equipped for Antarctic
                                           and Arctic support of
                                           scientific activities
MC-130E/H "Combat Talon I/II"         38  Global day, night, adverse
                                           weather special operations
                                           airdrop
MC-130P "Combat Shadow"               28  Air refueling for special
                                           operation forces'
                                           helicopters in hostile
                                           territory and airdrop of
                                           special operations teams
NC-130 (A, E, H)                       4  Test aircraft
WC-130H                               10  Weather reconnaissance
======================================================================
Total                                690
----------------------------------------------------------------------
\a The C-130E and C-130H models are both combat delivery aircraft and
are only separated in this table to identify amounts associated with
each model design. 

Source:  Developed by GAO using data from Air Force and C-130 System
Program Office. 

Appendix III provides further details on these C-130 models. 

The Air Force plans to buy the C-130J as a one-for-one replacement of
C-130Es and C-130Hs as they reach their service life.  Air Force
officials told us that the basic missions of the C-130 fleet will not
change when the new C-130J aircraft enter the fleet.  However, it
appears that these missions will be expanded.  Specifically, Air
Force officials told us that, as part of the Air Force's planned
C-130J procurement, it is planning to buy the new stretched
C-130J-30.  We were further told that because this aircraft will
provide more room/airplane capacity, it could be used to augment
intertheater missions, like strategic brigade airdrops.\6 Final
decisions regarding the procurement of the C-130J-30 and the
aircraft's use, however, will not be made until fall 1998. 


--------------------
\4 Channel operations are regularly scheduled airlift service
supporting multiple user organizations. 

\5 Special assignment missions are exclusive airlift service to a
single user to meet special requirements, such as a unit mobility
exercise. 

\6 Strategic brigade airdrop is the long-range delivery of an entire
Army brigade and its equipment. 


   WHAT ARE THE C-130 REQUIREMENTS
   FOR THE AIR NATIONAL GUARD AND
   AIR FORCE RESERVE? 
------------------------------------------------------------ Letter :3

At the time of our review, peacetime and wartime requirements for the
Air National Guard and Air Force Reserve combat delivery aircraft
inventory totaled 264 aircraft.  Requirements for the Guard and
Reserves' C-130 combat delivery aircraft are established in the Air
Force's C-130 MSP, which was delivered to Congress in 1997. 

The source of the requirements for these unit's special mission
C-130s varied depending on the model.  For example, we found that: 

  -- The requirements for the weather reconnaissance WC-130 were set
     at 10 aircraft by Congress. 

  -- The requirements for the ski-equipped LC-130, according to
     officials from the National Science Foundation (NSF) and Air
     National Guard, are set at 10 aircraft.  These aircraft are used
     to conduct operations in support of military taskings and in
     support (deliver supplies, people, fuel, and scientific
     equipment) of the NSF's polar research missions. 

  -- The requirements for the psychological warfare EC-130, the
     search and rescue HC-130, and adverse weather special operations
     MC-130 emanated from theater commander in chiefs.  According to
     Air Force officials, the specific required number of these
     aircraft is classified. 

Total combat delivery and special mission C-130 inventory for the Air
Force Guard and Reserve\7 was 352 aircraft as of January 1998. 
Appendix IV shows the inventory and locations for these aircraft.  As
of March 1998, Air Force officials stated that decisions regarding
their plans for the future C-130 inventory had not been made. 


--------------------
\7 Inventory for the remaining portions of this report covers C-130s
authorized for performance of the units' mission and does not include
the additional aircraft used for training and as backup for aircraft
undergoing maintenance. 


   WHAT IS THE C-130 PROCUREMENT
   HISTORY IN THE GUARD AND
   RESERVE UNITS? 
------------------------------------------------------------ Letter :4

For the past 21 years, with the exception of five aircraft,\8
Congress has directed the procurement of C-130s for the Air National
Guard and Air Force Reserve units.  According to C-130 program
officials, the Air Force has not requested these aircraft because
aircraft in those units have many years of service life remaining. 
Figure 1 shows the annual procurement of the 256 aircraft that
Congress directed for the Guard and Reserve since 1978. 

   Figure 1:  Air Force, Air
   National Guard, and Air Force
   Reserve C-130H and C-130J
   Procurements From 1978 Through
   1998

   (See figure in printed
   edition.)

Source:  Developed by GAO using Air Force, Air National Guard, and
Air Force Reserve data. 


--------------------
\8 These five aircraft were originally requested by the Air Force for
active Air Force units but were subsequently scheduled to go to the
Reserves at Keesler Air Force Base in Mississippi. 


   WHAT ARE AIR FORCE PLANS FOR
   RETIRING EXCESS C-130S IN THE
   MSP? 
------------------------------------------------------------ Letter :5

Both the Joint Chiefs of Staff's (JCS) June 1996 Intratheater Lift
Analysis\9 and the Air Force C-130 MSP\10 reviewed the service's
combat delivery aircraft inventory and determined that there were
more C-130s in inventory than required for military operations in
Korea and Southwest Asia--the two major regional contingencies the
Department of Defense (DOD) uses for force structure planning
purposes.\11 About 50 C-130 aircraft were identified in the Air Force
MSP as excess over requirements.  Thirty of these were in the Air
National Guard and Air Force Reserve units and the remaining were in
the active duty force. 

We were told that reductions in the active duty force structure was
achieved by reclassifying some of the combat coded aircraft and
designating others as ground trainers.  Reductions in the Air
National Guard were expected to be 24 aircraft (from 190 to 166
aircraft) and the Air Force Reserve Command units were to be reduced
by 6 aircraft (from 104 to 98 aircraft).  According to Air Force
officials, these reductions were not made.  In accordance with
restrictions in the Conference Reports on the 1998 Department of
Defense Appropriations Act and the National Defense Authorization Act
for Fiscal Year 1998, these reductions were not taken.  Specifically,
the reports recommended that the Air National Guard and the Air Force
Reserve C-130 aircraft remain at current levels--levels before the
MSP.  At the time of our review, Air Force officials told us that the
Air Force was in the process of designing a plan for retiring excess
C-130s. 


--------------------
\9 Congress directed DOD in fiscal year 1991 to assess, among other
things, its intratheater lift requirements and develop an integrated
plan to meet them.  This report, according to Joint Staff officials,
addressed this directive. 

\10 In September 1994, Congress requested this plan and asked that it
include the active duty and reserve components C-130 units and be
based on the National Military Strategy and current contingency plans
of the JCS. 

\11 To determine additional C-130 requirements for worldwide
contingencies unrelated to these scenarios, the Joint Staff surveyed
the theater commanders.  Even with their additional requirement, the
C-130 combat delivery fleet still exceeded the number needed for
intratheater lift. 


   IS THE AIR FORCE PROCESS FOR
   RETIRING C-130 AIRCRAFT WHEN
   REPLACEMENT AIRCRAFT BECOME
   AVAILABLE EFFECTIVE? 
------------------------------------------------------------ Letter :6

Although the Air Force has a process governing the retirement of its
aircraft, it has not been able to implement the process effectively. 
As a result, some C-130 aircraft have been retired with substantial
service life remaining and/or shortly after the aircraft had been
modified.  The Air Force, however, appears to be making changes to
improve this process. 

Air Force Instruction 16-402\12 governs the process for retiring
aircraft.  The process begins with a document called the Force
Structure Plan Outlook.  This document tells the commands how many
aircraft are excess to requirements in a given year, usually as a
result of budget constraints or a change in requirements for the
fleet.  Once a decision has been made to excess a certain number of
aircraft, the commands are to review: 

(1) The aircraft's remaining service life. 

(2) The recent maintenance history on the aircraft.  Program depot
maintenance and other inspection records are reviewed, at this point,
to assess whether the aircraft had a lot of corrosion problems,
maintenance troubles, and/or a known history of performance problems. 

When a decision to excess a specific aircraft is finalized, Air Force
headquarters is to determine whether other users--that is, active
duty, guard and reserves, and ultimately other agencies--could use
the aircraft.  If other users were not identified, the aircraft
should be retired. 

The Air Force has retired C-130s with service life remaining on the
aircraft.  Program officials told us that such retirements have
generally been driven by congressional direction to buy more C-130s
than the Air Force requested in its annual budget requests.  Program
officials told us that, accordingly, it was difficult to control the
retirement of C-130 aircraft.  They stated that, since retirement
from the fleet had been based on congressionally directed
acquisitions replacing existing C-130 aircraft, they were not
retiring aircraft because the service life had expired.  Of the 49
C-130s retired between June 1991 and May 1997, 36 were C-130Bs with
old technology and 13 were newer C-130Es.  Of the 13 C-130Es, all had
an average of 14 years of service life still remaining. 

In addition, annual congressional appropriation language states that,
with the exception of safety modifications, no modifications may be
done if the service plans to retire an aircraft in less than 5 years
after modifications.  We noted that of the 49 C-130 aircraft the Air
Force has retired since 1991, 40 had modifications\13 within 5 years
of retirement, totaling about $9 million.  Program officials told us
that it is difficult to control modifications of C-130 aircraft
because the Air Force does not generally know 5 years in advance when
a C-130 aircraft will leave the fleet. 

The Air Force appears to be taking steps to improve its C-130
modifications and retirement process.  Specifically, in October 1997,
the Vice Chief of Staff, in a message to the lead Air Force commands
for C-130 aircraft, stated that additional C-130J congressional adds
should be expected for fiscal year 1998 and beyond and that the
commands should plan and program accordingly.  Air Force officials
have stated that they will incorporate this direction in the
development of their C-130 retirement plan.  In that regard, an AMC
Tiger Team looking at the C-130 fleet has recommended to the Air
Force Chief of Staff that 150 C-130Es with the worst service life
problems be replaced with C-130J-30s.  We were told, however, that
final decisions were not expected on the retirement of the old C-130s
and procurement of the Js until late fall 1998.  Until these
decisions are made and the plan released, it is too early to
determine how well this directive will be implemented. 


--------------------
\12 Aerospace Vehicle Assignment, Distribution, Accounting, and
Termination, dated April 26, 1994. 

\13 Safety modifications are not included in this amount. 


   WHAT IS THE AIR FORCE C-130J
   REQUIREMENT AND WHAT OTHER
   ALTERNATIVES WERE REVIEWED? 
------------------------------------------------------------ Letter :7

As of March 1998, the Air Force had not decided how many C-130Js will
be required.  According to C-130 program officials, although the Air
Force has a documented requirement for the C-130J as the need arises,
a large-scale C-130J program is not needed at this time because the
service life of the first C-130E will not expire until 2002. 
Accordingly, the Air Force has only been requesting one or two
C-130Js per year since 1996 for the active force.\14 As previously
shown in figure 1, the remaining J acquisitions were congressionally
directed buys for the Guard and Reserve. 

The Air Force began procuring the J in accordance with directions
from the Air Force Chief of Staff to use fiscal year 1994 Guard and
Reserve procurement funds to buy two C-130Js.  Originally, the two J
models were going to the active duty Air Force, which provided the
Air National Guard two C-130Hs as a swap.  These two J models will
now be going to the Air Force Reserves at Keesler Air Force Base,
Mississippi, following the flight test program. 

The justification for the new C-130J buys, according to requirements,
acquisition, and budget documents, is to reduce the cost of ownership
of the C-130E and H fleet, with anticipated cost savings associated
with the new technology and the reduced crew and maintenance needs of
the J aircraft.  A review of the C-130J program office's life-cycle
cost estimate was completed in June 1996 by the Air Force Cost
Analysis Improvement Group.  The report stated that operations and
support savings are forecast from a program of 135 C-130Js bought
over the 1996 to 2014 time frame with the new technology and the
reduced crew and maintenance needs of the J aircraft.\15

Air Force officials, however, acknowledge that savings associated
with this commercial buy will not be substantiated until several
years after delivery/transfer of ownership is taken by the Air Force,
which, as previously stated, is now expected in October 1998 for the
first J aircraft. 

Additionally, during our review, some Air Force officials expressed
concern that the normal requirements process was not followed in the
recent J buys.  They stated that requirement documents for the
EC-130Js and WC-130Js were written after the Air Force had made a
commitment to buy the aircraft.  For example, Congress appropriated
funds for two unrequested EC-130Js--one in fiscal year 1997 and one
in fiscal year 1998.  An October 7, 1997, memorandum from the Office
of the Secretary of the Air Force for Acquisition noted, however,
that a validated operational requirements document had not yet been
generated.  Additionally, these officials noted that there have been
concerns that the EC-130J buy may not address all of the problems in
the current EC-130 fleet--primarily, the lack of adequate space on
the aircraft.  There are 12 crew stations aboard the EC-130 aircraft
and we were told that there is barely enough room for the
broadcasting equipment needed for each station.  The Air Force has
looked at the wide body Boeing 757 as a replacement for the current
EC-130 fleet, but has since decided to use the J. 

Regarding alternatives to the J, we were told that alternatives have
been evaluated and rejected in the past.  Specifically, in December
1996, an unsolicited proposal was submitted to modernize the C-130
fleet.  Appendix V summarizes the Air Force's reasons for rejecting
this proposal.  In addition to rejecting prior alternatives to the J
for cost and technical reasons, Air Force officials told us that the
alternatives were premature since the first C-130E is not scheduled
to retire until 2002.  Air Force officials also told us that the Air
Force is currently considering alternatives presented by an AMC tiger
team.  Among other things, the goals of the AMC effort included
developing an integrated plan to improve reliability and
maintainability of the fleet, produce greater commonality in the
fleet, and provide an overall acquisition strategy for the C-130
weapon system. 

After review of specific problems in the C-130 fleet, which included
the inability of the fleet to meet Global Air Traffic Management
requirements and structural/corrosion problems of the aging fleet,
the tiger team recommended that the Air Force (1) modify 360 of the
"best structural" C-130s with a block modification process that would
essentially put a new front end, including a new engine and cockpit,
on the older C-130 aircraft\16 and (2) replace aircraft with the
worst service life/structural/corrosion problems--about 150 in this
category--with new C-130J-30s.  Final decisions on both matters,
however, are not expected until the fall of 1998. 


--------------------
\14 According to current Air Force basing plans, however, all C-130Js
on contract are now scheduled to go to Guard and Reserve bases. 

\15 This amount includes the 1994 H/J swap C-130Js also.  The cost
estimate includes the cost to maintain the 135 Js from fiscal year
1997 through fiscal year 2041. 

\16 According to Air Force officials, this modified block process,
which will result in a configuration referred to as a C-130X, entails
a number of extensive modifications done at one time.  This will
bring the fleet up to date technologically and provide commonality
within the fleet. 


   WHAT IS THE C-130J LOGISTICS
   SUPPORT FUNDING SHORTFALL? 
------------------------------------------------------------ Letter :8

Air Force C-130 officials stated that funding shortfalls for the
C-130 fleet have historically been a problem, primarily because
Congress has added C-130 aircraft to their budget without providing
the needed funding for logistics support.  This support includes
spare parts, training, and maintenance that is normally provided with
a weapon system.  These officials further stated that the Air Force
was able to deal with the shortfalls in the past because a large
logistics support infrastructure was in place for the C-130E and
C-130H models, which helped them to absorb the shortfalls.  However,
they noted that because the C-130J is so different from those prior
models, the majority of the support in the current infrastructure
cannot be used for the J aircraft. 

Additionally, these officials noted that the Air Force, with its
constrained budgets and various weapon system priorities, has not
budgeted for these funding shortfalls.  According to these officials,
without the needed support funding, it is possible that some C-130J
aircraft may have to be cannibalized to support others in the fleet
or the unsupported C-130Js may have to be parked on the ramp at some
locations. 

The latest Air Force funding shortfall document reported a cumulative
logistics support shortfall through fiscal year 2003 of $302.11
million for the 23 C-130J aircraft on contract through 1998, the 1
requested in 1999, and the 2 that are expected to be bought in 2002
and 2003.  Table 2 presents the annual and cumulative logistic
support funding shortfalls associated with the C-130J program as of
January 7, 1998.\17



                                     Table 2
                     
                            Air Force C-130J Shortfall

                              (Dollars in millions)

Budget year             1994  1996  1997  1998  1999   2000   2001   2002   2003
----------------------  ----  ----  ----  ----  ----  -----  -----  -----  -----
Aircraft quantity          2     5     9     7     1      0      0      2      2
Annual shortfall           0     0    $-    $-   $-5   $-70   $-65   $-55   $-27
                                      11    69
Cumulative shortfall       0     0    $-    $-    $-     $-     $-     $-     $-
                                      11    80    85    155    220    275    302
--------------------------------------------------------------------------------
Source:  C-130J Program Office (as of Jan.  7, 1998). 

C-130J program officials told us that the lack of commonality of the
J with the existing fleet is causing the Air Force to fund the
following. 

  -- Interim Contractor Support (ICS).  This includes not only the
     typical ICS costs such as on-site contractor personnel,
     technical data, and repair of reparables, but also a commercial
     supply support system.  This support system is needed because,
     unlike the previous C-130 models, the Air Force does not yet
     have a database to determine the mean time between failure rates
     of the C-130J spares.  As a result, the correct amount of spares
     to maintain the fleet's mission capable rate is not known. 
     Hence, provisioning for the C-130J will be contracted out with
     this contractor support supply system. 

  -- C-130J training systems (simulators) and the associated costs of
     training flight and maintenance crews.  Current plans are to buy
     five flight simulators for pilot training, a maintenance
     trainer, and a loadmaster trainer. 

  -- C-130J peculiar support equipment.  This is the support
     equipment peculiar to the J and includes new or modified support
     equipment like testers, and special tools needed to test,
     remove, replace, or handle the C-130J unique items on the
     aircraft. 

Air Force officials stated that the J's funding problems are further
exacerbated because the aircraft are being assigned to several
different bases rather than a single base.  Specifically, the 23 Air
Force C-130Js on contract are assigned as follows:  9 WC-130Js and 4
combat delivery Js will be located at Keesler Air Force Base,
Mississippi; 2 EC-130Js will be located at the Air National Guard
unit in Harrisburg, Pennsylvania; and 8 combat delivery C-130Js will
be located at the Air National Guard unit in Baltimore, Maryland. 
These different base assignments result in redundant logistical
support such as maintenance and training costs at each base. 

Additionally, there has been much discussion between the Air Force
and the Director of Operational Test and Evaluation (DOT&E) regarding
the scope of Live Fire Test (LFT) for the C-130J program.  An
agreement was reached in March 1998, between the two and will be
reflected in the C-130J Test and Evaluation Master Plan and
appropriate live fire test plans.  While there is currently a funding
shortfall associated with the LFT program, the Air Force has agreed
to fund about $5.5 million for the following tests:  (1) the wing dry
bay, (2) the composite propeller, (3) engine fire suppression (combat
and non-combat), (4) the vulnerability analysis, and (5) the engine
blade containment.  DOT&E will fund the hydrodynamic ram testing and
the mission abort assessment, which will be about $2.2 million. 

Air Force and contractor officials have been working to remedy the
C-130J shortfall with such efforts as commercial supply support
system, also called shared logistics.  Shared logistics places
high-cost, low-use support equipment at a centralized location,
rather than at each base, while high usage and special mission spares
are placed at each of the bases where the C-130J will be located. 
Air Force officials said that, according to data provided by Lockheed
Martin, costs for spares would total about $20 million per base for a
new aircraft like the C-130J if each C-130J base was provided a full
complement of spare parts.  Under the shared logistics concept, only
$4 million would be required for each C-130J base compared with the
previously stated $20 million.  Savings from this concept have
already been incorporated into the Air Force's budget plan.  Although
no location has been selected for the centralized site, several have
been suggested, including options for putting the centralized
location where most of the planes will be based or at a location with
access to overnight delivery services to facilitate just-in-time
deliveries. 

In addition to the shared logistics savings, Congress has provided
about $24 million in the fiscal year 1998 budget to help fund C-130J
support shortfalls. 


--------------------
\17 The amounts associated with the funding shortfall varied a number
of times, during our review, because items to be purchased and/or the
funding assumed to be available changed.  Air Force officials said
estimates for the funding shortfall will continue to vary as long as
uncertainties, such as annual congressionally directed acquisitions
and related decisions on basing, exist. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :9

DOD concurred with our report.  DOD provided technical suggestions
for clarification and we have incorporated these suggestions in the
text of the report, where appropriate.  The DOD comments are
reprinted in
appendix VI. 


We are sending copies of this report to appropriate congressional
committees and the Secretaries of Defense and the Air Force.  We will
also provide copies to other interested parties upon request. 

Please contact me at (202) 512-4841, if you or your staff have any
questions concerning this report.  Major contributors to this report
are listed in appendix VII. 

Sincerely yours,

Louis J.  Rodrigues
Director, Defense Acquisitions Issues


C-130J HERCULES CARGO AIRCRAFT
=========================================================== Appendix I

The C-130J Hercules is the next generation medium-range tactical
cargo and personnel aircraft that will be introduced into the
existing C-130 fleet of Es and Hs.  It is intended to replace aging
C-130E/Hs as they approach the end of their service life.  Even
though the C-130 fleet has been known as the "workhorse" for the
active duty Air Force, the Air National Guard, and the Air Force
Reserve, the Navy and other governments use the airplanes as well. 

Development of the C-130J consists of the state-of-the-art
technology, according to Lockheed Martin--the contractor for the
"J"--and will reduce manpower requirements, operating costs, and
life-cycle costs.  Although the C-130J essentially has the same
structural characteristics as previous models, there are some
significant differences.  These include the advanced two-pilot flight
station with fully integrated digital avionics system with color
multi-functional liquid crystal displays and head-up displays;
navigation systems with dual embedded Global Positioning Systems,
mission planning system, low-power color radar, digital map display,
and new digital autopilot; simplified fuel system with provisions for
adding a receiver aerial refueling probe or tanker aerial refueling
pods; an extensive built-in test integrated diagnostics with an
advisory, caution, and warning system; and higher power turboprop
engines with more efficient, six-bladed all composite propellers. 

According to Lockheed Martin, the above enhancements will enable the
airplane to climb higher and faster, fly farther at a higher cruise
speed, and take off and land in a shorter distance than the existing
C-130 fleet.  Table I.1 presents the contractor's comparison of the J
and J-30 capabilities with those of previous models and figure I.1
shows a C-130J-30 model. 



                               Table I.1
                
                 Contractor Comparison of C-130E/H/J/J-
                30 Performance Capabilities and Capacity
                            Characteristics

Some capabilities and/or                                       C-130J-
capacities                        C-130E    C-130H    C-130J        30
------------------------------  --------  --------  --------  --------
Maximum payload (pounds)          39,000    39,000    41,700    39,300
Maximum payload range              1,860     1,745     2,450     2,450
 (nautical miles)
Maximum effort take off roll       3,300     3,000     1,950     1,950
 (feet)
Cruise speed (knots)                 280       300       340       340
Paratroops capacity                   64        64        64        92
Troop seats                           92        92        92       128
Cargo floor length (feet)             40        40        40        55
Litters                               74        74        74        97
Airdrop 463L pallets                   5         5         5         7
Container delivery system             16        16        16        24
 bundles
Runway length/width/taxiway       3,000/    3,000/    3,000/    3,000/
 (feet)                            60/45     60/45     60/45     60/45
All weather aerial delivery      Partial   Partial       Yes       Yes
----------------------------------------------------------------------
Source:  Lockheed Martin Corporation. 

Figure I.1 is a picture of the C-130J-30 aircraft. 

   Figure I.1:  C-130J-30

   (See figure in printed
   edition.)

   Source:  Lockheed Martin
   Corporation.

   (See figure in printed
   edition.)


SCOPE AND METHODOLOGY
========================================================== Appendix II

To accomplish our objectives, we interviewed a number of officials
within the Office of the Secretary of Defense; the Joint Chiefs of
Staff; the Office of the Secretary of the Air Force; the Air Mobility
Command, Scott Air Force Base, Illinois; the Air Combat Command,
Langley Air Force Base, Virginia; the Air Force Materiel Command,
Wright-Patterson Air Force Base, Ohio; the Air Education and Training
Center, Little Rock Air Force Base, Arkansas; Air National Guard
Headquarters, Washington, D.C.; Air National Guard Readiness Center,
Andrews Air Force Base, Maryland; Air National Guard, Harrisburg,
Pennsylvania; the Air Force Reserve Command, Robins Air Force Base,
Georgia; the Warner-Robins Air Logistics Center, Robins Air Force
Base, Georgia; Air Force Reserve Components in Baltimore and
Minneapolis; Lockheed Martin, Arlington, Virginia; Air Force Audit
Agency; the National Science Foundation, Virginia; and the Defense
Contract Management Command, Marietta, Georgia. 

To ascertain the mission of the current and planned C-130 fleet, we
reviewed the Air Combat Command's C-130 Total Force Plan Briefing,
C-130 Combat Delivery Mission Area Plan, and Combat Air Forces
Concept of Operations for Theater Airlift; the Air Mobility Command's
1998 Air Mobility Master Plan; Operational Requirements Documents for
the various C-130 model designs; the Joint Chiefs of Staffs
Intratheater Lift Analysis; the Air Force C-130 Master Stationing
Plan; prior and current C-130 Selected Acquisition Reports; and Air
Force headquarters' written responses in this area. 

To obtain the Air National Guard and Air Force Reserve C-130
requirement--including current and planned inventory and the C-130
procurement history for these units, we obtained such information
from the headquarters Air National Guard, Washington, D.C.; the Air
Force Reserve Command, Robins Air Force Base, Georgia; and the Air
Logistics Center, Warner-Robins Air Force Base, Macon, Georgia. 

To ascertain the Air Force plans for retiring C-130s identified as
excess aircraft in the C-130 Master Stationing Plan, we reviewed the
Final C-130 Master Stationing Plan, and Public Law 103-335, section
8125, which requires the plan.  In addition, we obtained written
responses from Air Force headquarters, Air National Guard, Air Force
Reserves headquarters, and the Air Mobility Command on this matter. 

To determine the effectiveness of the Air Force's system for retiring
old aircraft when new C-130s enter the fleet, we reviewed listings of
modifications in the C-130 System Program Offices' Time Compliance
Technical Orders that were done to C-130B and E models retired since
1978, and applicable laws and regulations regarding modifying and
retiring aircraft.  We also obtained views from C-130 program
officials on how retirement of the fleet was done in the past and how
they expect it will be done in the future. 

To determine the Air Force requirement/justification for the C-130J
aircraft and whether or not alternatives to buying the new J model
were considered, we reviewed the C-130J Operational Requirement
Document; the Single Acquisition Management Plan and other applicable
program documentation; Senate Report 104-267, which required the
Secretary of Defense to report by March 1997 on the benefits of
remanufacturing the C-130 fleet and the Under Secretary of Defense
for Acquisition and Technology's April 29, 1997, letter to
congressional defense committees on this subject; Wright-Patterson
Air Force Base's assessment of an unsolicited proposal to
remanufacture the C-130 fleet; and data provided by Air Force
headquarters regarding the requirement for the program.  We also
toured the C-130J-30 on display at Ronald Reagan National Airport. 

To ascertain the Air Force logistic support funding needs for the
C-130J aircraft, we reviewed the October 1995 and November 1996
C-130J contracts and applicable documentation for subsequent options
that were exercised, and the quarterly C-130J Defense Acquisition
Executive Summary Report for the C-130J program.  We also obtained
views, perspectives, and supporting documentation from officials at
Air Force headquarters, Air Combat Command, Air Mobility Command, and
the C-130J System Program Office at Wright-Patterson Air Force Base
regarding the reasons for the funding shortfalls and
initiatives/efforts to reduce the shortfalls. 

We conducted this review from January 1997 to March 1998 in
accordance with generally accepted government auditing standards. 


DETAILED MISSION DESCRIPTIONS FOR
C-130 MODELS
========================================================= Appendix III

C-130 model:  C-130E and H Hercules (Combat delivery models)

Commands:  Air Mobility Command, Air Combat Command, Air Force
Reserve, Air Education and Training, Air National Guard, and Air
Force Special Operations Command

Mission:
The C-130 Hercules combat delivery models perform the intratheater
portion of the airlift mission.  Their primary mission is to provide
rapid transportation of personnel or cargo for delivery by parachute
to hostile areas, or by landing at rough, dirt strips within those
areas.  The C-130 E/H models can also be used as tactical transports
and can be readily converted for aeromedical evacuation or aerial
delivery missions.  The C-130 is the primary tactical aeromedical
evacuation aircraft.  During peacetime, it joins on mercy flights
throughout the world, bringing food, clothing, shelter, doctors,
nurses, and medical supplies as well as moving victims to safety. 

Special equipment/features:
The C-130H is generally similar to the E model but has updated
turboprops, a redesigned outer wing, updated avionics, and other
minor improvements.  In its airlift configuration, the C-130E/H can
carry up to
92 combat troops with equipment, 64 paratroopers, 74 litter patients,
or
6 standard 463-L pallets.  It can transport various configurations of
rolling stock, including some oversize vehicles.

C-130 model:  AC-130H Spectre

Command:  Air Force Special Operations Command

Mission:
The AC-130H is a gunship with primary missions of close air support,
air interdiction, and armed reconnaissance.  Additional missions
include perimeter and point defense, escort, landing, drop and
extraction zone support, forward air control, limited command and
control, and combat search and rescue. 

Special equipment/features:
These heavily armed aircraft incorporate side-firing weapons
integrated with sophisticated sensor, navigation, and fire control
systems to provide firepower or area saturation during extended
periods, at night, and in adverse weather.  The sensor suite consists
of a low light level television sensor and an infrared sensor.  Radar
and electronic sensors also give the gunship a method of positively
identifying friendly ground forces as well as effective ordnance
delivery during adverse weather conditions.  Navigational devices
include an inertial navigation system and global positioning system.

C-130 model:  AC-130U Spectre Gunship

Command:  Air Force Special Operations Command

Mission:
The AC-130U's primary missions are nighttime close air support for
special operations and conventional ground forces; air interdiction;
armed reconnaissance; air base, perimeter, and point defense; land,
water, and heliborne troop escort; drop, landing, and extraction zone
support; forward air control; limited airborne command and control;
and combat search and rescue support. 

Special equipment/features:
The AC-130U has one 25-millimeter Gatling gun, one 40-millimeter
cannon, and one 105-millimeter cannon for armament and is the newest
addition to the Air Force Special Operations Command's fleet.  This
heavily armed aircraft incorporates side-firing weapons integrated
with sophisticated sensor, navigation, and fire control systems to
provide firepower or area saturation at night and in adverse weather. 
The sensor suite consists of an all light level television system and
an infrared detection set.  A multi-mode strike radar provides
extreme long-range target detection and identification.  The fire
control system offers a dual target attack capability, whereby two
targets up to 1 kilometer apart can be simultaneously engaged by two
different sensors, using two different guns.  Navigational devices
include the inertial navigation system and global positioning system. 
The aircraft is pressurized, enabling it to fly at higher altitudes
and allowing for greater range than the AC-130H.  Defensive systems
include a countermeasures dispensing system that releases chaff and
flares to counter radar infrared guided anti-aircraft missiles.  Also
infrared heat shields mounted underneath the engines disperse and
hide engine heat sources from infrared guided anti-aircraft missiles. 

C-130 model:  EC-130E "Command Solo"

Command:  Air National Guard

Mission:
EC-130E Commando Solo, the Air Force's only airborne radio and
television broadcast mission, is assigned to the 193rd Special
Operations Wing, the only Air National Guard unit assigned to the Air
Force Special Operations Command.  Commando Solo conducts
psychological operations and civil affairs broadcasts.  The EC-130E
flies during either day or night scenarios and is air refuelable. 
Commando Solo provides an airborne broadcast platform for virtually
any contingency, including state or national disasters or other
emergencies.  Secondary missions include command and control
communications countermeasures and limited intelligence gathering. 

Special equipment/features:
Highly specialized modifications include enhanced navigation systems,
self-protection equipment, and the capability to broadcast color
television on a multitude of worldwide standards.

C-130 model:  EC-130E Airborne Battlefield Command and Control Center
(ABCCC)

Command:  Air Combat Command

Mission:
The EC-130E is a modified C-130 "Hercules" aircraft designed to carry
the ABCCC capsules.  While functioning as an extension of
ground-based command and control authorities, the primary mission is
providing flexibility in the overall control of tactical air
resources.  In addition to maintaining control of air operations,
ABCCC can provide communications to higher headquarters, including
national command authorities, in both peace and wartime environments. 

Special equipment/features
These one of a kind aircraft include the addition of external
antennae to accommodate the vast number of radios in the capsule,
heat exchanger pods for additional air conditioning, an aerial
refueling system, and special mounted rails for uploading and
downloading the capsule.  The ABCCC system is a high-tech automated
airborne command and control facility featuring computer generated
color displays, digitally controlled communications, and rapid data
retrieval.  The platform's 23 fully securable radios, secure
teletype, and 15 automatic fully computerized consoles, allow the
battlestaff to analyze current combat situations and direct offensive
air support.

C-130 model:  EC-130H "Compass Call"

Commands:  Air Combat Command and Air Force Materiel Command

Mission:
Compass Call is the designation for a modified version of the C-130
"Hercules" aircraft configured to perform tactical command, control,
and communications countermeasures.  Specifically, the aircraft uses
noise jamming to prevent communication or the transfer of information
essential to command and control of weapon systems and other
resources.  It primarily supports tactical air operations but also
can provide jamming support to ground force operations. 

Special equipment/features
Modifications to the aircraft include an electronic countermeasures
system (Rivet Fire), air refueling capability, and associated
navigation and communications systems.  Rivet Fire demonstrated its
effect on enemy command and control networks in Panama and Iraq.

C-130 model:  HC-130

Commands:  Air Combat Command, Air Force Reserve, and Air National
Guard

Mission:
The HC-130H/N's mission is search and rescue.  The HC-130P does
aerial refueling of combat search and rescue helicopters and
deployment of para-rescuemen.  The HC-130P deploys worldwide to
provide combat search and rescue coverage for U.S.  and allied
forces.  Combat search and rescue missions include flying low-level,
preferably at night aided with night vision goggles, to an area where
aerial refueling of a rescue helicopter is performed or
para-rescuemen are deployed.  The secondary mission of the HC-130P is
peacetime search and rescue.  HC-130P aircraft and crews are trained
and equipped for search and rescue in all types of terrain, including
arctic, mountain, and maritime.  Peacetime search and rescue missions
may include searching for downed or missing aircraft, sinking or
missing water vessels, or missing persons.  The HC-130P can deploy
para-rescuemen to a survivor, escort helicopters to a survivor, or
airdrop survival equipment. 

Special equipment/features:
H/N aircraft are equipped with an advanced avionics package. 
Improvements are being made to the HC-130P to provide improved
navigation, enhanced communications, better threat detection, and
more effective countermeasures systems.  When fully modified, the
HC-130P will have a self-contained navigation system, including an
inertial system and global positioning system.  It will also have a
missile warning system, radar warning receiver, and associated chaff
and flare dispenser systems. 

C-130 model:  LC-130H

Command:  Air National Guard

Mission:
The primary mission of this model is Arctic support.  Two specific
missions are support of (1) the National Science Foundation in
Antarctica and (2) assorted national and international scientific
activities in Greenland.  (The Navy also operates seven LC-130
aircraft in Antarctica.  These aircraft move large amounts of cargo,
personnel, and fuel throughout the continent.)

Special equipment/features:
LC-130s are specially equipped with landing gear wheel/ski
modification for operation in Arctic regions.

C-130 model:  MC-130E Combat Talon I and MC-130H Combat Talon II

Commands:  Air Force Special Operations Command, Air Force Reserve,
and Air Education and Training Command

Mission:
The mission of the Combat Talon I/II is to provide global, day,
night, and adverse weather capability to airdrop and airland
personnel and equipment in support of U.S.  and allied special
operations forces.  The MC-130E also has a deep penetrating
helicopter refueling role during special operations missions. 

Special equipment/features:
These aircraft are equipped with in-flight refueling equipment,
terrain-following, terrain-avoidance radar, an inertial and global
positioning satellite navigation system, and a high-speed aerial
delivery system.  The special navigation and aerial delivery systems
are used to locate small drop zones and deliver people or equipment
with greater accuracy and at higher speeds than possible with a
standard C-130.  The aircraft is able to penetrate hostile airspace
at low altitudes and crews are specially trained in night and adverse
weather operations.  Nine of the MC-130Es are equipped with
surface-to-air Fulton air recovery system, a safe, rapid method of
recovering personnel or equipment from either land or water.  It
involves use of a large, helium-filled balloon used to raise a
450-foot nylon lift line.  The MC-130E flies toward the lift line and
snags it with scissors-like arms located on the aircraft nose.  The
person or equipment is lifted off, experiencing less shock than that
caused by a parachute opening.  Aircrew members then use a hydraulic
winch to pull the person or equipment aboard through the open rear
cargo door.  The MC-130H features highly automated controls and
displays to reduce crew size and workload.

C-130 model:  MC-130P Combat Shadow

Commands:  Air Force Special Operations Command, Air Education and
Training Command, and Air Force Reserve

Mission:
The MC-130P Combat Shadow flies clandestine or low visibility,
low-level missions into politically sensitive or hostile territory to
provide air refueling for special operations helicopters.  The
MC-130P primarily flies its single- or multi-ship missions at night
to reduce detection and intercept by airborne threats.  Secondary
mission capabilities include airdrop of small special operations
teams, small bundles, and rubber raiding craft; night-vision goggle
takeoffs and landings; tactical airborne radar approaches; and
in-flight refueling as a receiver. 

Special equipment/features:
When modifications are complete in fiscal year 1999, all MC-130P
aircraft will feature improved navigation, communications, threat
detection, and countermeasures systems.  When fully modified, the
Combat Shadow will have a fully integrated inertial navigation and
global positioning system, and night-vision goggle-compatible
interior and exterior lighting.  It will also have a forward-looking
infrared radar, missile and radar warning receivers, chaff and flare
dispensers, and night-vision goggle-compatible heads-up display.  In
addition, it will have satellite and data burst communications, as
well as in-flight refueling capability as a receiver.  The Combat
Shadow can fly in the day against a reduced threat; however, crews
normally fly night, low-level, air refueling and formation operations
using night-vision goggles.

C-130 model:  NC-130A, E, H

Command:  Air Force Materiel Command

Mission:
Test aircraft.

C-130 model:  WC-130H

Command:  Air Force Reserve

Mission:
The WC-130 Hercules is a high-wing, medium-range aircraft used for
weather reconnaissance missions.  It is a modified version of the
C-130 configured with computerized weather instrumentation for
penetration of severe storms to obtain data on storm movements,
dimensions, and intensity.  The WC-130 is flown exclusively from
Keesler Air Force Base by Air Force Reserve organizations known as
the Hurricane Hunters.  The hurricane reconnaissance area includes
the Atlantic Ocean, Caribbean Sea, Gulf of Mexico, and central
Pacific Ocean areas.  The WC-130 is capable of staying aloft nearly
18 hours during missions.  It is equipped with two external 1,400
gallon fuel tanks, an internal 1,800 gallon fuel tank, and uprated
engines.  An average weather reconnaissance mission might last 11
hours and cover almost 3,500 miles while the crew collects and
reports weather data. 

Special equipment/features:
Weather equipment aboard the aircraft provides a high-density, high
accuracy horizontal atmospheric sensing capability.  Sensors
installed on the aircraft measure outside temperature, humidity,
absolute altitude of the aircraft, pressure altitude, wind speed, and
direction once per second.  This information, along with an
evaluation of other meteorological conditions, turbulence, icing,
radar returns and visibility, is encoded by the on-board
meteorologist and transmitted by satellite to the National Hurricane
Center.  Special equipment measures the atmosphere vertically by
using an expendable instrument, which is dropped from the aircraft. 
The 16-inch long cylinder is dropped every 400 miles while on a
weather track and in the center or eye of a hurricane.  A vertical
atmospheric profile of pressure, temperature, humidity, barometric
pressure, wind speed, and direction is received from the instrument
as it descends to the ocean surface, slowed and stabilized by a small
parachute.  From this information, the system operator analyzes and
encodes data for satellite transmission to the National Hurricane
Center. 


AIR NATIONAL GUARD AND AIR FORCE
RESERVE C-130 INVENTORY
========================================================== Appendix IV



                               Table IV.1
                
                   Air National Guard C-130 Aircraft
                   (inventory as of January 12, 1998)

                                                                Invent
Model                           Location                           ory
------------------------------  ------------------------------  ------
C-130E                          Baltimore, Md.                       8
C-130E                          Quonset, R.I.                        8
C-130E                          Channel Island ANG Sta, Calif.      12
C-130E                          Reno, Nev.                           8
C-130E                          Boise, Idaho                         4
C-130E                          Peoria, Ill.                         8
C-130E                          Little Rock, Ark.                    8
C-130E                          Selfridge, Mich.                     8
======================================================================
Total C-130E                                                        64
C-130H                          Schenectady, N.Y.                    4
C-130H                          Nashville, Tenn.                    12
C-130H                          Charleston, W.Va.                    8
C-130H                          Louisville, Ky.                     12
C-130H                          Minneapolis/St. Paul, Minn.          8
C-130H                          Dallas, Tex.                         8
C-130H                          Oklahoma City, Okla.                 8
C-130H                          St. Joseph, Mo.                      8
C-130H                          Charlotte, N.C.                     12
C-130H                          Cheyenne, Wyo.                       8
C-130H                          Savannah, Ga.                        8
C-130H                          Wilmington, Del.                     8
C-130H                          Martinsburg, W.Va.                  12
C-130H                          Kulis, Alaska                        8
C-130H                          Mansfield Lahm Airport, Ohio         8
C-130H                          Hickam, Hawaii                       4
C-130H                          McEntire, S.C.                       1
C-130H                          New Orleans, La.                     1
======================================================================
Total C-130H                                                       138
======================================================================
Total ANG C-130 Es and Hs                                          202
EC-130E                         Harrisburg, Pa.                      5
HC-130H                         Kulis, Alaska                        2
HC-130N/P                       Suffolk, N.Y.                        4
HC-130P                         Moffet NAS, Calif.                   4
LC-130H                         Schenectady, N.Y.                    7
======================================================================
Total ANG Special Mission C-                                        22
 130s
======================================================================
Grand total ANG C-130 Aircraft                                     224
----------------------------------------------------------------------
Source:  Developed by GAO using Air National Guard data. 



                               Table IV.2
                
                Air Force Reserve C-130 Aircraft (As of
                           January 12, 1998)

                                                                Invent
Model                           Location                           ory
------------------------------  ------------------------------  ------
C-130E                          Portland IAP, Oreg.                  0
C-130E                          Patrick AFB, Fla.                    0
C-130E                          Eglin AFB, Fla.                      0
C-130E                          Minneapolis/St. Paul, Minn.          8
C-130E                          Keesler AFB, Miss.                   8
C-130E                          Willow Grove, Pa.                   10
======================================================================
Total C-130E                                                        26
C-130H                          Gen. Mitchell IAP, Wis.             10
C-130H                          Youngstown, Ohio                    16
C-130H                          Pittsburgh, Pa.                      8
C-130H                          Dobbins, Ga.                         8
C-130H                          Niagara Falls, N.Y.                  8
C-130H                          Peterson AFB, Colo.                 14
C-130H                          Maxwell AFB, Ala.                    8
======================================================================
Total C-130H                                                        72
======================================================================
Total AFR C-130Es and Hs                                            98
HC-130N/P                       Patrick AFB, Fla.                    5
HC-130P                         Portland IAP, Oreg.                  3
MC-130E                         Eglin AFB, Fla.                      8
MC-130P                         Eglin AFB, Fla.                      4
WC-130H                         Keesler AFB, Miss.                  10
======================================================================
Total AFR Special Mission C-                                        30
 130s
======================================================================
Grand total AFR C-130 Aircraft                                     128
----------------------------------------------------------------------
Source:  Developed by GAO using Air Force Reserve data. 


SUMMARY OF AIR FORCE REASONS FOR
REJECTING THE UNSOLICITED C-130
MODERNIZATION PROPOSAL
=========================================================== Appendix V

On December 16, 1996, an unsolicited proposal was submitted to the
Air Force to modernize the C-130 fleet.  The proposal anticipated a
21-month schedule to fabricate prototypes at a firm fixed-price of
$50 million, with projected potential fleet-wide savings of $6
billion. 

The C-130 Program Office review of the unsolicited proposal concluded
that, although the proposal was technically feasible, it was
impractical due to cost, schedule, and technical risks.  The actual
evaluation is labeled FOR OFFICIAL USE ONLY, precluding a detailed
explanation of those risks in this report.  However, generic examples
of the risks included: 

  -- aggressive concurrency in program schedule;

  -- reliance on reverse engineering in lieu of original manufacturer
     equipment data because of proprietary rights of original
     manufacturer;

  -- use of unproven technology;

  -- inadequate support equipment, manuals, training, and spares for
     the prototype, and for the test and evaluation effort;

  -- inadequate software development and integration for an undefined
     avionics suite, including lack of crew-member workload analysis;

  -- an additional $15 million for the test and evaluation effort
     would be required over the firm fixed-price proposal of $50
     million; and

  -- insufficient substantiation of the $6-billion claimed savings. 

In recommending nonapproval of the unsolicited proposal, the C-130
Program Office also cited the lack of program requirement, funding,
and direction for the proposed C-130 program as additional reasons
for rejection.  Finally, the Program Office concluded that the
proposal was not unique and innovative as prescribed in the Federal
Acquisition Regulation for unsolicited proposals.  Hence, even if the
proposal was acceptable, it would not qualify for an exception to
full and open competition. 




(See figure in printed edition.)Appendix VI
COMMENTS FROM THE DEPARTMENT OF
DEFENSE
=========================================================== Appendix V


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================= Appendix VII

NATIONAL SECURITY AND
INTERNATIONAL AFFAIRS DIVISION,
WASHINGTON, D.  C. 

Steven Kuhta
Thomas Denomme
Marion A.  Gatling
Delores Cohen
Michele Mackin

OFFICE OF THE GENERAL COUNSEL

William T.  Woods
John Carter

KANSAS CITY FIELD OFFICE

Greg Symons

CHICAGO FIELD OFFICE

Daniel Hauser


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