{"id":61026,"date":"2016-12-07T15:42:49","date_gmt":"2016-12-07T15:42:49","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2016\/12\/07\/continuing-resolution-includes-language-to-prevent-kc-46-penalty\/"},"modified":"2026-08-08T00:35:46","modified_gmt":"2026-08-08T00:35:46","slug":"continuing-resolution-includes-language-to-prevent-kc-46-penalty","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/air\/2016\/12\/07\/continuing-resolution-includes-language-to-prevent-kc-46-penalty\/","title":{"rendered":"Continuing Resolution Includes Language to Prevent KC-46 Penalty"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The KC-46 program, one of the Air Force&#8217;s top three procurement priorities, will likely remain on track even as Congress presses forward with a continuing resolution that will extend current funding levels until next April.<br\/><br\/> Congressional Republicans unveiled a short-term budget extension Tuesday evening that will boost KC-46A funding to the levels requested in the fiscal 2017 budget: about $2.9 billion for procurement, up from $2.4 billion in 2016. The program is one of the few military acquisition programs to receive such consideration and will keep the Air Force from having to pay a penalty to manufacturer Boeing.<br\/><br\/><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Air Force Secretary Deborah Lee James warned in August that a long-term continuing resolution would cap KC-46A production at 12 aircraft, which could push back initial operational capability. Because the service had entered into a fixed-price contract with Boeing, it is contractually obligated to buy 15 aircraft in FY17 or risk paying a $331 million penalty, said Defense Department Comptroller Mike McCord in a memo obtained by <a class=\"\" href=\"http:\/\/www.rollcall.com\/news\/policy\/pentagon-warns-stopgap-spending-bill-hurt-terrorism-fight\" target=\"_blank\" title=\"Link: http:\/\/www.rollcall.com\/news\/policy\/pentagon-warns-stopgap-spending-bill-hurt-terrorism-fight\">CQ Roll Call<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although the terms of the CR give some relief to the KC-46 program in particular, other Air Force programs could be adversely affected by the measure, which prevents production increases and keeping new-start programs from kicking off.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Overall, a long-term CR would fund the Air Force at about $1.3 billion less than the amount we requested in FY17 and cause many, many [issues] in our system,&#8221; James said in August. For instance, funds for the B-21 bomber would remain stagnant, which could impact its delivery schedule. Upgrades to the MQ-9 Reaper unmanned aerial system, C-130 cargo transport aircraft, and the B-52 and B-2 bombers would also receive less funding than planned, she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lawmakers must pass a continuing resolution by the end of the week, or a government shutdown will be triggered. The proposed CR would extend until April 28.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Shortly after the Pentagon approved the KC-46A for low-rate initial production (LRIP) this summer, it awarded Boeing a\u00a0$2.8 billion contract for the 19 tankers that make up the first two LRIP lots.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company now is contractually obligated to deliver the first 18 certified aircraft in January 2019, as technical challenges made it impossible for Boeing to meet its initial\u00a0August 2017\u00a0deadline.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The KC-46 program, one of the Air Force\u2019s top three procurement priorities, will likely remain on track even as Congress presses forward with a continuing resolution that will extend current funding levels until next April.<\/p>\n","protected":false},"author":7,"featured_media":51073,"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":7,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,8,19],"tags":[],"coauthors":[3384],"class_list":["post-61026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-congress","category-pentagon"],"acf":{"subheadline":"","legacy_arc_id":"CMMYD2TEU5AUPJPTNYFJNENNCQ","arc_canonical_url":"\/air\/2016\/12\/07\/continuing-resolution-includes-language-to-prevent-kc-46-penalty\/","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) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Continuing Resolution Includes Language to Prevent KC-46 Penalty - Defense News<\/title>\n<meta name=\"description\" content=\"The KC-46 program, one of the Air Force\u2019s top three procurement priorities, will likely remain on track even as Congress presses forward with a continuing resolution that will extend current funding levels until next April.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Continuing Resolution Includes Language to Prevent KC-46 Penalty\" \/>\n<meta property=\"og:description\" content=\"The KC-46 program, one of the Air Force\u2019s top three procurement priorities, 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