{"id":39594,"date":"2015-09-15T21:59:18","date_gmt":"2015-09-15T21:59:18","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2015\/09\/15\/usaf-general-cr-could-break-kc-46-contract\/"},"modified":"2026-08-07T23:14:26","modified_gmt":"2026-08-07T23:14:26","slug":"usaf-general-cr-could-break-kc-46-contract","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/digital-show-dailies\/afa-air-space\/2015\/09\/15\/usaf-general-cr-could-break-kc-46-contract\/","title":{"rendered":"USAF General: CR Could Break KC-46 Contract"},"content":{"rendered":"\n<p>NATIONAL HARBOR Md.\u00a0\u2014\u00a0If the Pentagon is forced to operate for a long time under a continuing resolution, it could lead the US Air Force to break its contract with Boeing <span class=\"rte rte-comment\">about <\/span>on the KC-46 tanker.<br\/> \u00a0<br\/> Brig. Gen. Duke Richardson, the program executive on the Air Force\u2019s next-gen tanker program, told an audience at the Air Force Association annual convention that a continuing resolution (CR) would create a &#8220;very large problem&#8221; for the program.<\/p>\n\n\n\n<p>But how big a problem wasn\u2019t clear until after his speech, when he told a reporter that the CR could potentially break the <span class=\"rte rte-comment\">existing <\/span>contract with Boeing, one which is notable for the financial protection it affords the service.\u00a0<\/p>\n\n\n\n<p>Under the <span class=\"rte rte-comment\">current <\/span>contract, the Air Force&#8217;s liability for the engineering and manufacturing development phase of the tanker program is capped at $4.9 billion;\u00a0<span class=\"rte rte-comment\">with <\/span>anything over is paid for directly by Boeing. So far, technical issues have cost Boeing $1.2 billion in pre-tax overages on the program.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That protection has been cited by Richardson and others whenever concerns about the tanker program, which has suffered several technical issues in the last 18 months, have occurred.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But that could go away under the CR, Richardson noted, if the Air Force is unable to reach a requirement to award two low-rate initial production (LRIP) contracts to Boeing once the program reaches Milestone C in April of 2016.<\/p>\n\n\n\n<p>According to Richardson, the contract requires the Air Force to award eight<span class=\"rte rte-comment\">8<\/span> aircraft at minimum in the first two LRIP contracts. However, only the first LRIP contract, covering seven aircraft, has funding under fiscal 2016\u2019s budget plan.<\/p>\n\n\n\n<p>The second LRIP contract, covering planes eight through 12<span class=\"rte rte-comment\">twelve<\/span>, would then be unable to be awarded under a CR,\u00a0breaking the contract with Boeing unless the service can get a waiver from Congress.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">In better news, Richardson announced the first flight of a full KC-46 tanker is on track for Sept.\u00a025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The general largely defended the program, noting that despite media reports on the tanker, &#8220;we are definitely struggling with schedule but we are not struggling with performance.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The EMD aircraft, a modified 767 without a functioning boom, has been flying since the end of last year, but the first flight of a &#8220;full-up&#8221; KC-46 has been delayed several times.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing is required to have 18 aircraft ready to go by August\u00a02017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking to Defense News earlier this month, Gen. Mark Welsh, Air Force chief of staff, raised concerns about the progress of the KC-46 program.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><br\/> When asked to rate his concern about a potential delay in production, Welsh said: &#8220;much more than I would have been a year ago, and a little more than I would have been six months ago.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;We&#8217;ve taken the slack out of the program now, and now we have to perform and deliver on a timeline that&#8217;s predictable,&#8221; he continued.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: <a href=\"mailto:amehta@defensenews.com\">amehta@defensenews.com<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Twitter: <a href=\"https:\/\/twitter.com\/aaronmehta\">@AaronMehta<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: <a href=\"mailto:lseligman@defensenews.com\">lseligman@defensenews.com<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Twitter: <a href=\"https:\/\/twitter.com\/laraseligman\">@laraseligman<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A lengthy continuing resolutiont could force the Air Force to break its KC-46 contract with Boeing<\/p>\n","protected":false},"author":7,"featured_media":82544,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":74,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[74,29,33],"tags":[],"coauthors":[3378,1820],"class_list":["post-39594","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-afa-air-space","category-digital-show-dailies","category-home"],"acf":{"subheadline":"","legacy_arc_id":"KSTV74SUGVADBA6PQYRYX74SEI","arc_canonical_url":"\/digital-show-dailies\/afa-air-space\/2015\/09\/15\/usaf-general-cr-could-break-kc-46-contract\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - 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