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of the key subsystems incorporated in the F-16 were developed and
produced by GENDYN itself. Other subsystems were procured from
vendors and subcontractors. Approximately 115 components were
provided by the Air Force as Government-furnished equipment.
GENDYN was generally responsible for integrating all of the
various subsystems into the F-16 while guaranteeing that the
aircraft performed according to specification. GENDYN could
procure equipment for the F-16 only from suppliers that had been
“qualified” by the Air Force. The process by which a supplier
becomes “qualified” is difficult and time-consuming, usually
lasting about 3 years. Under Contract 2034, GENDYN bore the risk
that a subcontractor would go out of business or default on its
subcontract. If a single-source subcontractor defaulted due to
technological difficulties or otherwise, GENDYN would be required
to absorb the time and expense of qualifying an alternative
source of supply without any relief from the price and schedule
provisions of Contract 2034.
To meet its delivery schedule with the Air Force, GENDYN had
to coordinate the production and delivery schedules of all of its
suppliers and subcontractors. Due to the extensive coproduction
of various components, the F-16 program under Multiyear I became
the most complicated aircraft assembly and production program
ever undertaken. Notwithstanding that GENDYN had manufactured
F-16's before, numerous problems arose during the performance of
the multiyear contract, many of which were entirely unforeseen.
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