The Department of the Navy (DON) in 2003 began implementing a Navy-Marine Corps Tactical Air Integration (TAI) plan aimed at more closely integrating Navy and Marine Corps strike fighter inventories. DON said the plan will reduce strike fighter procurement costs by about $35 billion, but increase strike fighter readiness costs by about $16.5 billion, resulting in a net savings of about $18.5 billion. DON in June 2005 modified the TAI plan to respond to increased operational tempo. The TAI plan raises several potential oversight issues. This report will be updated as events warrant.