USAF May Have to Crack KC-46 Contract

A long-term continuing resolution to keep the federal government funded into the new fiscal year could require the Air Force to renegotiate some contracts, like the KC-46, possibly undoing agreed-upon terms, said Lt. Gen. Arnold Bunch, the military deputy to the assistant secretary of the Air Force for acquisition, on Thursday. Speaking at an AFA-sponsored Air Force breakfast, Bunch said a CR of any sizable length will “impact” the rate at which the F-35, KC-46, and other programs are bought next year. “If we get a yearlong continuing resolution … there is a chance that we may have to go in and open up some contracts that … I don’t think any of us want to [renegotiate] right now,” Bunch said. USAF might “look for a waiver” from Congress to ensure the KC-46 is not affected by the CR rules, keeping the project on track, he told reporters afterwards. The KC-46 is a fixed-price-incentive development contract. The past few F-35 lots also have been fixed-price, and new F-35 lots are under negotiation now. Bunch said beyond the “50ish” new starts that would be halted by a CR, there are other projects in the development world “not captured” in that number, that would be affected even? though they “may not even be fully started yet.” Overall, the CR “would have a dramatic impact on our Air Force,” and acquisition officials are studying the “ripple effects” of any workarounds, he said.