Boeing Is Likely to Miss Another Tanker Deadline, Air Force Says (excerpt)
(Source: Bloomberg News; published March 07, 2018)
By Anthony Capaccio
Boeing Co. is expected to once again miss the key deadline for the contract on its KC-46 refueling tanker, the U.S. Air Force said.

Boeing’s program schedule continues to show that it plans to deliver the first 18 tankers, two spare engines and nine sets of wing-mounted refueling pods by October, which is already 14 months later than the initial date of August 2017.

But the Air Force now says that the required deliveries are “more likely” to be completed “in late spring 2019,” spokeswoman Ann Stefanek said in an emailed statement that reflects the findings in a new schedule-risk assessment. “The top issues slowing progress” are Federal Aviation Administration airworthiness certifications “and completing the flight test program,” Stefanek said.

“These potential delays will not result in additional program cost to the taxpayer,” Stefanek said. That’s because Boeing is required to use its own funds under its “fixed priced-incentive fee” contract, which caps the Air Force’s liability at $4.9 billion. The Air Force estimates Boeing will complete the contract for $6.3 billion, or $1.4 billion over budget. Boeing estimates it will complete the development work for $5.9 billion. (end of excerpt)

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