{"id":58053,"date":"2017-10-25T16:24:33","date_gmt":"2017-10-25T16:24:33","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/10\/25\/boeing-hit-with-another-kc-46-cost-overrun-this-time-worth-329m\/"},"modified":"2026-08-08T00:11:01","modified_gmt":"2026-08-08T00:11:01","slug":"boeing-hit-with-another-kc-46-cost-overrun-this-time-worth-329m","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2017\/10\/25\/boeing-hit-with-another-kc-46-cost-overrun-this-time-worth-329m\/","title":{"rendered":"Boeing hit with another KC-46 cost overrun, this time worth $329M"},"content":{"rendered":"\n

WASHINGTON \u2014 Boeing on Wednesday disclosed more bad news on the KC-46 program: The company will have to eat another $329 million as a result of cost overruns.<\/p>\n\n\n\n

Under the terms of its fixed-price deal with the U.S. Air Force, Boeing must pay out of pocket for any expenses over the $4.9 billion contract value. That agreement has been a tough pill for Boeing to swallow, as the company has now had to cough up about $2.9 billion in pretax fees \u2014 or about $1.9 billion after tax \u2014 as delays and cost overruns mount.<\/p>\n\n\n\n

There are signs another missed milestone may be on the way.<\/p>\n\n\n\n

Over the past year, Boeing has remained adamant that it can deliver the first KC-46 aircraft by the end of 2017 \u2014 although the Air Force believes it will be later, likely next spring.<\/p>\n\n\n\n

Asked by Defense News whether the company still believes it can hit that deadline, Boeing spokesman Chick Ramey demurred.<\/p>\n\n\n\n

\u201cWe\u2019re working with the Air Force on the schedule and expect to deliver the first 18 tankers in 2018,\u201d he said. Regarding a contractual obligation to deliver 18 certified KC-46s and nine refueling pods, \u201cwe remain on track for late next year.\u201d<\/p>\n\n\n\t