Boeing Wins $2.8Bn Order for KC-46A Tanker Initial Production

Pentagon Contract Announcement

(Source: US Department of Defense; issued Aug 18, 2016)

The Boeing Co., Seattle, Washington, has been awarded a $2,814,816,489 contract action modification (P00099) to previously awarded contract FA8625-11-C-6600 for the acquisition of low-rate initial production (LRIP) aircraft Lots 1 and 2.

As authorized by the KC-46 Milestone C acquisition decision memorandum dated Aug. 12, 2016, this contract modification obligates funding for pre-priced options for seven Lot 1 LRIP aircraft, two Lot 1 LRIP spare engines, and five Lot 1 LRIP wing refueling pod kits.

It further obligates funding for pre-priced options for 12 Lot 2 LRIP aircraft, two Lot 2 LRIP spare engines, and five Lot 2 LRIP wing refueling pod kits.

Work will be performed at Seattle, Washington, and is expected to be complete by Aug. 24, 2018. Fiscal 2015 and 2016 aircraft procurement funds in the amount of $2,814,816,489 are being obligated at time of award.

The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

(EDITOR’S NOTE: It is somewhat ironic to see the Pentagon declare above that low-rate initial production of the KC-46A is authorized by the “Milestone C acquisition decision,” since it has spent well over $50 billion on low-rate initial production of the F-35 fighter without a Milestone C decision.
Milestone C for the F-35 is currently scheduled for 2019.
So, all Pentagon programs are not created equal -- some follow acquisition regulations that others flout, with no obvious justification, reason or method.)

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Boeing Awarded $2.8B for KC-46A Tanker Initial Production

(Source: Boeing Co.; issued August 18, 2016)

EVERETT, Wash. --- The U.S. Air Force awarded Boeing $2.8 billion on Aug. 18 for KC-46A tanker low-rate initial production.

The award includes the first two “production lots” of 7 and 12 planes respectively, as well as spare parts. Including future options, Boeing plans to build a total of 179 of the 767-based refueling aircraft for the Air Force to replace their KC-135 fleet.
“The KC-46 tanker will provide the Air Force unprecedented refueling capabilities, operational flexibility and combat readiness,” said Leanne Caret, Boeing Defense, Space & Security president and CEO. “It’s an important day for the company and program. We’re excited about building low-rate initial production aircraft, and it’s only possible because of the hard work of the joint Boeing-Air Force team.”

This step forward follows a Defense Acquisition Board review and announcement that the KC-46 program completed “Milestone C” -- a set of required ground- and flight-test tests – and is approved for initial production. Those tests included refueling flights with F-16, F/A-18, AV-8B, KC-10, C-17 and A-10 aircraft and a cargo handling demo.

Boeing received an initial contract in 2011 to design and develop the U.S. Air Force’s next-generation tanker aircraft. As part of that contract Boeing built four test aircraft – two configured as 767-2Cs and two as KC-46A tankers. The test aircraft have completed more than 1,000 flight hours to date.

The KC-46A is a multirole tanker that can refuel all allied and coalition military aircraft compatible with international aerial refueling procedures and can carry passengers, cargo and patients.

Boeing is assembling KC-46 aircraft at its Everett, Wash., facility. The company will begin delivering tankers to the Air Force in 2017.

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