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.
Depot-level maintenance took longer than expected for nearly three-quarters of Air Force aircraft from fiscal 2019-2024, according to a new report, as unplanned repairs rise across the aging fleet. The report, from the Government Accountability Office, also found that the extent of the delays has been masked because officials often revise their target timelines after unplanned work occurs.