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Analysis of armed forces uncertainty on the price of combat aircraft – 10,000 hours per year



Storting's commission for control and constitutional affairs has been asked by Defense Minister Frank Bakke-Jensen (H), which is the total purchase price of an aircraft based on the current exchange rate.

"The whole process is long-lasting (about 5 months), involving both Norwegian and American actors. The funds for implementing the annual uncertainty analysis are estimated at about 10,000 hours," the minister wrote in his response letter.

The letter promises to give Storting an "updated estimate," but first to the state budget for the next year.

– Absolutely absurd

Bakke-Jensen's response persuades SV Vice President Torgeir Knag Fylkesnes.

"It is absolutely absurd that the government must spend 10,000 hours each year just to figure out how much airline actually costs," says county councils, who are in the control and constitutional committee.

"It shows how little control they have on the costs," he adds.

The Steering Committee became interested in the cost of a combat aircraft plan after Bergens Tidende focused on a critical search for projections.

Avisin concluded the calculation with a cost gap of 16 billion Norwegian krona. The leader of SV Audun Lysbakken had to demand that Bakke Jensen meet with Storting to answer questions.

Until now this has not happened. A part of BT's defense is challenged by the Ministry of Defense, but it has not been taken into account that Storting considers the case to be completed by the letter of the Defense Minister's response to the Control and Constitutional Commission.

You want a full investigation

Since its inception, SV has been critical of the acquisition of F-35 combat aircraft, but the government and the parliamentary majority have up to date made decisions to purchase up to 52 US aircraft from Lockheed Martin.

WHITE: Red-headed Bjørnar Moxnes wants the Chief Auditor's Office to investigate the entire plane's purchase. Photo: Terje Bendiksby / NTB scanpix
AT: Redhead Bjørnar Moxnes wants the Chief Auditor's Office to investigate the entire plane's purchase. Photo: Terje Bendiksby / NTB scanpix
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Also, the Order has been against the purchase of US combat aircraft since the beginning. According to Dagbladet, Red Head Officer and Parliamentary Representative Bjørnar Moxnes claimed that the Chief Auditor's Office was investigating the entire purchase of combat aircraft.

"Warning lights have blown up for this scandalous purchase since the red-green government, with bourgeois support, entered the shelling of pigs F-35, which is far better for US-led battles than for Norway's defense," Moxnes asserts.

So far, the Chief Auditor's Office has taken into account the operational capability of the aircraft in transition from today's F-16 to F-35. The report is secretly stamped, but will be dealt with in the Control and Constitutional Commission.

The secret mark gives Storting a headache, acknowledging the chairman of the Supervisory Board of Dag Terja Andersen (AP) when the report was delivered in early May.

Bakke-Jensen responds

With regard to the committee's question of cost estimation, Bakke-Jensen has the following answer why is the answer to the question so demanding how much does the aircraft cost in today's dollar exchange rate:

CURRENT: Defense Minister Frank Bakke-Jensen (H) says there are no fixed elements when calculating the cost of buying combat aircraft. Photo: Terje Pedersen / NTB scanpix
IN PROCESS: Defense Minister Frank Bakke-Jensen (H) says there are no fixed elements when calculating the cost of buying combat aircraft. Photo: Terje Pedersen / NTB scanpix
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"If we put the current course on last year's cost elements, we have to assume that only the dollar exchange rate can change and that everything else is fixed, this is not the case, because the cost elements change, they have interdependence and must be calculated in context. Make calculations where individual elements are different in calculation, but such calculations will only show the sensitivity of different elements. To achieve the expected cost of acquisition as a whole, the all cost elements are updated in the same period. "

– Most agreeable

"This is a job that involves far more than determining how much it will cost combat aircraft," explains Dagbladet Defense Minister Frank Bakke-Jensen.

– Do you think there's a lot of 10,000 hours a year?

"I think it's wise to do a thorough job of tracking costs, risks, and budgeting needs. It is a cost-effective program of just over 85 billion Norwegian crowns and annual payments over 7 billion Norwegian krona.

The so-called uncertainty analyzes are extensive and require a lot of time and resources, according to the minister of defense. He states that the work involves employees in the Ministry of Defense, Defense Materials, Air Force, FLO, Defense Building and Defense Institute.

– The core of less than 10 people it has as part of their work throughout the year. At about 30 people in the most intensive workplaces with group analysis, Dagbladet gets a statement.

Bakke Jensen says the Armed Forces receive numbers and backgrounds from Americans, but that the work is done by Norwegian staff. At the same time, he admits that calculation exercises could be facilitated:

– There are easier ways to do that. But for procurement with this complexity and size, it is absolutely crucial with thoroughness. There are also requirements arising from financial management regulations in the country.

– Lower than expected

The production of combat aircraft made them cheaper when leaving the production hall, says Bakke Jensen. According to him, it is now expected that the basic price of the so-called A-model F-35 aircraft, to be delivered in 2021, will be below $ 80 million.

– We are very pleased with this result. The price is lower than we expected and the result of good deals and cost cutting measures.

The uncertainty analysis carried out today has been made for the procurement of combat aircraft since 2006 and is being implemented every year since 2012. According to plan, it will be implemented in the same way as the contract for the latest combat aircraft in the procurement. The rough estimate suggests that the work on uncertainty analysis costs around NOK 5 million.

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