U.S. Tanker Acquisition Caps Pentagon’s Liability, but Risks Remain | Aviation International News

U.S. Tanker Acquisition Caps Pentagon’s Liability, but Risks Remain

The U.S. Air Force contract with Boeing for engineering and manufacturing development (EMD) of the KC-46A aerial refueling tanker caps

U.S. Air Force officials say dual FAA certifications of the Boeing 767 airframe presents program risk for KC-46A tanker. (Photo: Boeing)

October 28, 2011

The U.S. Air Force contract with Boeing for engineering and manufacturing development (EMD) of the KC-46A aerial refueling tanker caps the government’s cost liability, government program executives said. They nevertheless expressed concern about program risks during a hearing before a House of Representatives subcommittee on October 13.

The fixed-price, incentive-fee EMD contract awarded to Boeing in February provides a contract ceiling of $4.83 billion. It calls for Boeing to produce four prototype tankers based on the 767-2C, a new commercial freighter derivative of the 767-200ER. Boeing has informed the Air Force that it will exceed the agreed ceiling by some $300 million, according to published reports. “The contract structure helps protect the taxpayer by capping the government’s cost liability and preventing runaway cost growth.” the program executives said.

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