93041: C-17 Cargo Aircraft Program

Publication Date: March 2000

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

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Abstract:

The C-17 Globemaster III is a long-range cargo/transport aircraft operated by the U.S. Air Force since 1993. Congress approved development of the aircraft in the late 1970s, when it was recognized that the Air Force did not have enough airlift capability. In 1981, the McDonnell Douglas C-17 emerged as winner of a competition with Boeing and Lockheed to develop a next-generation aircraft to replace C-130s and C-141s.

Full-scale development of the C-17 got underway in 1986, but technical problems and funding shortfalls delayed the program, leading to slipped schedules and increased costs. Despite these difficulties, the C-17 has retained congressional support and enjoyed strong Air Force and Army backing. Defense officials view the C-17 as essential in the post-Cold War environment, because of its ability to use smaller bases in remote areas.

The C-17 first flew in 1991, about a year later than originally scheduled. Deliveries began in 1993, and in January 1995 the Air Force declared the aircraft fully operational. By January 2000, the Air Force had taken delivery of 57 C-17s, some of which were used in Bosnia and later in Kosovo operations with notable success.

Production problems in the late 1980s raised questions about the possibility of more cost-effective alternatives. In April 1990, Defense Secretary Cheney reduced the projected buy from 210 to 120 planes. In late 1993, DOD gave the contractor two years to solve production problems or face termination of the contract, with airlift shortfalls to be filled by modified commercial transport planes or existing military airlifters.

By the mid-1990s, the program's earlier difficulties had been largely resolved, although some questioned the number of C-17s to be procured. In 1996 DOD approved plans to order 80 more C-17s for a total of 120 aircraft -- increased in late 1998 to 134. Through FY1999, some $28 billion was provided for the C-17 program, which would cost about $45 billion for development and procurement of 134 aircraft, as estimated in September 1999.

For FY1997, Congress appropriated almost $2.2 billion for procurement of eight C-17s under a multiyear procurement contract. For FY1998, Congress provided $2.3 billion for the program, procuring nine aircraft. The FY1999 budget provided some $3 billion for procurement of 13 C-17s. The FY2000 budget provides about $3.1 billion for the program, procuring another 15 aircraft. For FY2001, the Administration requested some $3.1 billion for procurement of 12 C-17s.