Boeing U.S. tanker program seen $1B over budget

The U.S. Air Force on Friday estimated that Boeing's (BA) development of the new KC-46A refueling plane will cost $1B more than initially planned, but the terms of the government's contract mean the company must cover the added costs, according to a Reuters report.

The latest estimate from the Air Force office that runs the aerial tanker program puts the total development cost at $5.85B, $250M over last year's projection; the Air Force says the government's liability is capped at the contract ceiling price of $4.9B despite the increase.

Boeing says it remains on track to meet its initial $5.1B estimate for developing the new military tanker, which will replace some of the Air Force's aging fleet of KC-135 tankers, and expects to make a profit on the overall program.

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Comments (5)
  • StudeRanch
    , contributor
    Comments (18) | Send Message
    This isn't the first tanker built on the 767 so I am suspect of the government's ability as far as finances go- just look how they keep their own budget!
    24 Mar 2014, 12:00 PM Reply Like
  • combie
    , contributor
    Comments (102) | Send Message
    "Boeing remains on track"
    Now that sounds like Boeing who said for 7 years the 787 is on track. LOL
    The tanker is a mess internally.
    24 Mar 2014, 12:24 PM Reply Like
  • thomas85225
    , contributor
    Comments (552) | Send Message
    Boeing has been wining government contact by paying off Darleen Druyun United States Air Force civilian official (Principal Deputy Undersecretary of the Air Force for Acquisition) and Boeing executive.


    In December 2003, the Pentagon announced the project was to be frozen while an investigation of allegations of corruption by one if its former procurement staffers, Darleen Druyun(who had moved to Boeing in January) was begun. Reporter Joseph Galloway wrote that some documents found in congressional investigation indicated the A330-based tanker met more of the USAF specifications than the Boeing tanker and had a lower proposed cost.[7][8] Druyun pleaded guilty and was sentenced to nine months in jail for "negotiating a job with Boeing at the same time she was involved in contracts with the company".[9] Additional fallout included the termination of CFO Michael M. Sears, who was sentenced to four months in prison in 2005, and the resignation of Boeing CEO Philip M. Condit.[10] The Air Force's KC-767A contract was officially canceled by the DoD in January 2006.[11]


    The kc-46 is more cargo than tanker and carries no fuel in belly and it takes two Kc-46 to do the jobs of one Douglas Kc-10A or one Northrop Kc-46
    The contact need to be return to Northrop that builds two Kc-46 in six month on time and on budget.
    The cost overrun where report some time ago
    The Kc-46 is 900 million over budget and one year’s late going into testing
    Boeing KC-46 tanker may be delayed -GAO report


    Economist report: Boeing KC-46 tanker could suffer from budget cuts

    Boeing P-8 Surveillance Plane Found Not Effective for Mission...


    Kc-46 limited export possibilities, Boeing has only sold 8 export tanker that took 8 years to design and delivery


    Japan rejects 767 tankers


    Boeing Fixes Italian Tanker


    Endgame Profile of Boeing - Endgame Research - Similarto Endgame Profile of Boeing - Endgame Research


    Boeing: Corporate Rap Sheet | Corporate Research Project - Similarto Boeing: Corporate Rap Sheet | Corporate Research Project


    Taxpayers for Common Sense commends the Inspector General for this comprehensive study of the K-767 Tanker deal the billion dollar Boeing bailout that has become the biggest military procurement scandal in decades. The 256-page report chronicles how senior Pentagon officials let Boeing play by a different set of procurement rules in attempting to award them this unprecedented sweetheart deal
    In 1997 Boeing won a contact to rebuild and update the Kc-135 E, R, T with new cockpit, new aircraft Skins and new wiring that only had 1400-1800 hours on there airframe and good for 3900 hours or the years 2020


    Boeing was allow to rewrite the PFR to win the Kc-46
    Saudi Snub of Boeing


    Japan and Italy sue Boeing over the export tanker the KC-767
    Japan rejects 767 tanker


    The kc-135 only has 1400-1800 hours on their airframe and the service life is 3900 hours which not be reach to the years 2040


    The Air Force has retire the Kc-135E that was update since 1997 and E model can be turn into R model for 23 million per the GOA report


    Boeing build 9 767 export tanker and only sold eight Kc-767A, four Kc-767 J has been delivers by Boeing and the kc-767AT


    Boeing Build 9 767 export tanker and sold 4 to Japan and 4 to Italy
    the 9th kc-767 is park at pain field in Everett has been cut up


    Per the GAO the kc-46 offer no advance over the existing Kc-135 R & T
    Boeing has rebuilding the Kc-135 fleet since 1997 at Boeing (Kelly AFB) San Antonio Texas
    The Kc-135 E,R,T fleet only has 1400-1800 hours on their airframe and the GAO has stated KC-135 can go another 30 years since the kc-135 only log 375 hour a year’s


    The kc-767 and kc-46 is mix match of Boeing parts aka the frankentanker


    The 767-400ER Tanker Conundrum - FlightBlogger - Aviation News ... conundrum/
    The kc-46 which is base on the 767 that was design in 1972 and build in Japan assembly in Everett and flow to Italy to be complete as a taker create over 48,000 Jobs (American jobs????)


    To meet International Traffic in Arms Regulations The Boeing P-8 is assemble in own building in Renton, The kc-46 is assembly in Everett where any non American or foreign national has access to the aircrafts




    Airbus has sold over 30 kc-30 tankers and the Northrop kc-46 would be assembly in Mobile, Alabama USA
    The C-17 is a Multi Role Transport that can be used as a hospital, cargo, troop carrier, that transport equipment including M-1 tanks, and can landing or air drop and the c-17 can land on undeveloped airfield
    The C-17 was design to be a tanker, AWACS, weapon delivery platform, Senor/ electronics platform and tanker per MDC93K0048


    It’s time to used the C-17 to replaced all the 707 military platform as a tanker and do not build the 767-200 export tanker that was design in 1972 and build in Japan (The air force would need to use the 767-400 to meet its refueling need. see flight blogger)
    24 Mar 2014, 12:56 PM Reply Like
  • bulbtrader
    , contributor
    Comments (7) | Send Message
    Cost overruns are normal. I may be missing something, but the most recent government job I know of that came in under budget was the Golden Gate Bridge.
    26 Mar 2014, 02:33 AM Reply Like
  • thomas85225
    , contributor
    Comments (552) | Send Message
    Boeing must prove its self on the first 18 tanker or the contact go back to Northrop with the Kc-45
    the Boeing kc-46 is one billions over budget and one years late going into testing


    Boeing took hat took 8 years to design and delivery the Japan and Italian tankers


    Japan rejects 767 tankers


    Boeing Fixes Italian Tanker
    9 Apr 2014, 12:46 PM Reply Like
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