The US Air Force now projects the cost of developing the KC-46A Pegasus tanker will be more than a billion dollars higher than initial projections, but the US government’s liability for that cost is capped, reported Reuters. The total development cost of the KC-46A program is now slated for $5.85 billion for 179 new tankers, an estimate some $250 million higher than last year’s projections for the program, Air Force spokesman Ed Gulick told Reuters. However, officials have not offered any further details on why costs have increased. Gulick emphasized the US government’s liability for development remains capped at the contract’s ceiling price of $4.9 billion and that Boeing continues to meet its contract obligations, such as the delivery of four engineering and manufacturing development aircraft. Boeing officials told the wire service it remains committed to meeting its $5.1 billion development estimate, saying its engineering, manufacturing, and development costs are consistent with estimates it developed at the time of the bid. Boeing officials also emphasized the fixed-price contract ensures no further costs to US taxpayers.
Secretary of Defense Pete Hegseth visited the site of U.S. Space Command’s future home Dec. 12 and endorsed the move to establish the headquarters in Alabama after years of political back and forth.
