Boeing Wins $2.1Bn Order for KC-46A Tankers

Pentagon Contract Announcement

(Source: US Department of Defense; issued Jan 27, 2017)

The third KC-46A production lot comprises 15 tankers as well as spares and equipment, and works out to an average cost of $141 million per aircraft. (USAF photo)

The Boeing Co., Seattle, Washington, has been awarded a $2,122,841,088 modification (P00110) to previously awarded contract FA8625-11-C-6600 for KC-46 Lot 3 production.

Contractor will provide 15 KC-46 aircraft, data, two spare engines, and five wing refueling pod kits.

Work will be performed at Seattle, Washington, and is expected to be complete by July 30, 2019. Fiscal 2017 aircraft procurement funds in the amount of $2,122,841,088 are being obligated at the time of award.

Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-11-C-6600).

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Boeing Awarded $2.1B for Third KC-46A Tanker Production Lot

(Source: Boeing Co.; issued Jan. 27, 2017)

EVERETT, Wash. --- The U.S. Air Force today awarded Boeing $2.1 billion for 15 KC-46A tanker aircraft, spare engines and wing air refueling pod kits.

This order is the third low-rate initial production lot for Boeing. The first two came in August 2016 and included seven and 12 planes, respectively, as well as spare parts.

Boeing plans to build 179 of the 767-based refueling aircraft for the Air Force to replace its legacy tanker fleet. Tanker deliveries will begin later this year.

“This award is great news for the joint Boeing-Air Force team and reinforces the need for this highly efficient and capable tanker aircraft,” said Mike Gibbons, Boeing KC-46A tanker vice president and program manager. “Our Boeing industry team is hard at work building and testing KC-46 aircraft, and we look forward to first delivery.”

"Placing an order for another 15 aircraft is another important milestone for the KC-46 program," said Col. John Newberry, Air Force KC-46 System program manager. "I know the warfighter is excited about bringing this next generation capability into the inventory."

Boeing received an initial contract in 2011 to design and develop the 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. Those test aircraft, along with the first production plane, have completed nearly 1,500 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.

(EDITOR’S NOTE: In 2016, Boeing took two separate charges totaling $312 million for the KC-46A program, according to its Jan. 25 financial statement.
This included a “$243 million pre-tax charge on the KC-46 Tanker program primarily related to additional effort to incorporate previously identified changes into initial production aircraft,” and “a $69 million pre-tax charge on the KC-46 Tanker program at Boeing Military Aircraft.”)

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