Pentagon Would Boost Readiness and Cut Costs with FAA-Certified Overhauled Parts

For decades, commercial airlines have relied on meticulously overhauled or repaired aircraft parts that meet the Federal Aviation Administration’s (FAA) safety certification standards. These reused components known as Used Serviceable Material (USM) are as reliable as factory-new equipment but far less expensive. The Pentagon stands to benefit from the airlines’ approach to keeping their planes in good repair and can save taxpayers’ money in the process.

Used parts don’t necessarily mean bad parts

FAA-certified USM parts cost 50-70% less than new parts on average. If the Defense Department used a mix of new and overhauled parts on all its commercial-style planes, known as commercial derivative aircraft, it could save nearly $2 billion over seven years and safely raise the readiness of the nearly 800 commercial derivative aircraft that the U.S. Air Force and Navy fly, according to a recent study by the respected management consulting firm Oliver Wyman.

The USM process works like this: Used but still-operating parts are removed from retired commercial aircraft and engines, inspected and, if needed, overhauled/repaired in accordance with FAA requirements. They are then placed into other aircraft or engines that need updated equipment, or put in the supply chain for future use. The refurbished parts are certified according to FAA rules to be as good as new.

The USM process offers several potential advantages to the Defense Department. Chief among them is that the Pentagon can rapidly access parts rather than waiting up to 18 months to obtain new parts for its commercial derivative aircraft. In other words, USM would greatly reduce the fleet’s downtime, which is vital, especially during times of active conflict.

How commercial airlines benefit

Commercial airlines already benefit from the USM system. For example, experts agree that USM plays a crucial role in allowing commercial airlines to maintain their remarkable readiness rates.

The Pentagon has known about the benefits of USM for years. The fiscal 2023 National Defense Authorization Act (NDAA) mandated the Defense Department to increase its utilization of used parts. But the practice has not yet become standardized, systemic, or sustainable.

Members of Congress from both sides of the aisle are eager for the Pentagon to get moving on USM. Sen. Tammy Duckworth (D-IL) urged Christopher J. Lowman, Assistant Defense Secretary for Sustainment, to implement proven programs like USM during his nomination hearing in 2022. This year, Rep. Michael Waltz (R-FL) asked U.S. Air Force Secretary Frank Kendall about the exorbitant costs of buying commercial parts and urged him and the Air Force to utilize more USM.

But the Defense Department has not yet embraced the benefits of utilizing USM to support its commercial derivative fleet. Program managers hesitate to use overhauled parts despite their proven reliability and cost-effectiveness because they are not familiar with FAA rules and the long and well established USM safety record. As a result, they tend to buy new parts without considering the longer lead times and higher costs because ordering new parts directly from the factory is considered ‘risk-free’.

Protecting supply lines

In addition to the cost savings, the benefits today are even more significant given the danger from disrupted new parts supply lines that could prevent the U.S. military from doing its job. Sens. Mark Kelly (D-AZ), a member of the Armed Services Committee, and Mitt Romney (R-UT), ranking member of the Foreign Relations Subcommittee on East Asia and the Pacific, recently introduced the Bolstering Indo-Pacific Capabilities Act to shore up U.S. military logistics lines and improve readiness, particularly in the Indo-Pacific region.

“Ensuring our military supply chains are resilient and robust is critical to our national security,” Sen. Kelly said in a statement. Sen. Romney agreed:“By bolstering and protecting supply lines now, the United States would be better able to address a potential contested logistics environment in the future.” USM fits this category perfectly because it enhances the Pentagon’s ability to sustain prolonged operations by ensuring a steady supply of essential parts.

The Pentagon would greatly increase the availability, reliability, and readiness of its commercial derivative aircraft by embracing FAA-certified overhauled parts across their aircraft and engine fleets. The fleets would be as safe as if they used only new equipment. As a bonus, hundreds of millions of dollars in savings could be used elsewhere to protect America from increasing threats around the world.

This article was originally published by RealClearDefense and made available via RealClearWire.