Unclassified version of Document 3:9 (2023–2024) / Published Introduction of Norway's new fighter aircraft F-35
The Ministry of Defense has done too little, too late to introduce the new F-35 fighter jets. The target of full operational capability in 2025 is not going to be achieved and budgeting has been unrealistic. The Office of the Auditor General of Norway strongly criticises the Ministry.
Brief background
- The F-35 is the largest investment in the public sector of all time.
- Parliament has decided that the F-35 will have full operational capability in 2025.
- We have conducted two surveys – one on lifetime costs and a follow-up survey on operational capability.
- The surveys are presented in a summary report, to provide a comprehensive overview of the phasing-in phase-in.
- We are publishing an unclassified version of the overall report. The full report is classified at the level "LIMITED" under the provisions of the Security Act.
The Ministry of Defence's compliance with lifetime cost requirements for the F-35
Lifetime costs estimate how much the fighter aircraft will cost over their lifetime, from acquisition to operation and disposal. Life cycle costs were an important criterion when the Parliament, Storting, decided to procure the F-35 in 2008, and the calculations should include all costs.
Overall assessment
- It is objectionable that the Ministry of Defence, in the period 2012 to 2022, has not budgeted so that the Storting's goal for combat aircraft procurement can be achieved by 2025. The Ministry of Defence has significantly underestimated the need for manning in the fighter aircraft organisation. The ministry has not budgeted sufficient funds for fighter jet-related property, construction and construction.
- It is unsatisfactory that the lifetime costs for combat aircraft procurement have been underestimated and that the estimate has not been calculated in line with the requirements of the Armed Forces Procurement Regulations. Indirect costs and costs for future investment needs for property, building and construction are not included in the estimate. Thus, the Ministry of Defense does not fully comply with the Storting's decisions and assumptions regarding the lifetime costs of the F-35.
Conclusions
- In the period 2012 to 2022, the Ministry of Defence has not budgeted so that the Storting's target for combat aircraft procurement can be achieved by 2025.
- The Ministry of Defence does not fully comply with the Storting's decisions and assumptions regarding the lifetime costs of the F-35.
Recommendations
The Office of the Auditor General recommends that the Ministry of Defence
- include all direct and indirect costs of the F-35 in the lifetime cost estimate to ensure that the Storting has a complete basis for decision-making
- consider making regular calculations of lifetime costs for future major materiel investment projects for the entire defence sector
Infrastructure and support functions for the combat air force's operational capability – a follow-up investigation
In 2019, the Office of the Auditor General examined the prerequisites for the combat aircraft's operational capability in the transition from the F-16 to the F-35. The entire investigation was classified as security.
We have now followed up the survey to see if the Ministry of Defence has followed up our findings and recommendations from 2019.
This is the first time the Office of the Auditor General has published information about the operational capability of the new combat aircraft.
Overall assessment
It is highly objectionale that the Ministry of Defence has not implemented sufficient measures to achieve the Storting's ambition for the combat air force in 2025, despite the fact that the risks have been known for a long time.
Conclusions
The Ministry of Defence has not adequately followed up the findings and recommendations of the Office of the Auditor General's investigation from 2019, which the Storting endorsed in its closed deliberations. The consequence is that the conditions for the combat air force to fully achieve the Storting's ambitions in 2025 are not present. This will have implications for the Armed Forces' overall task solving.
The Office of the Auditor General sees these challenges:
- Persistent shortages of personnel and expertise mean that the Air Force is not fully able to meet the requirements for full operational capability for the F-35 in 2025.
- The forward operating base at Evenes has been established. According to the Ministry of Defence, the tent solution for the F-35 in Ørland satisfies the requirements of the Security Act for protection, but provides inefficient operation.
- There are persistent deficiencies in the materiel and supply readiness of the combat air force.
- Persistent deficiencies in personnel and materiel in air defence and base defence result in reduced capacity for protection.
- There are challenges with airspace surveillance and the procurement of new radar systems is vulnerable to delays.
- There are risks associated with upgrading and modernising command and control information systems in the Air Force.
- The Ministry of Defence has improved its reporting on introduction of the F-35, but has not followed up reported risks with adequate measures.
It is important to emphasize that Norway has a modern combat air force with considerable capacity. The Office of the Auditor General acknowledges that a number of measures have been implemented to meet the recommendations of the previous investigation. The measures will not be sufficient and have not been implemented in time to achieve the Storting's ambition for the combat air force in 2025. The Office of the Auditor General is therefore following the matter further.