The Air Force has accepted delivery of Boeing’s first new tanker airplane, despite problems that leaves the plane “years away from reaching their full operational potential.”
The U.S. Air Force has accepted the first Boeing KC-46A Pegasus tanker, an important milestone for the troubled program. However, the initial batch of aircraft will still have serious problems with their remote vision and refueling boom systems, meaning that the planes remain years away from reaching their full operational potential.
Foreign Policy was the first to report on the agreement between the Air Force and Boeing to proceed with the deliveries of the aircraft, citing anonymous sources, on Jan. 10, 2019. Defense News then reported that the Chicago-headquartered planemaker had agreed to fix the remaining deficiencies and that the Air Force’s top leadership reserved the right to withhold full payment for the planes – up to $1.5 billion in total if the service docks the company for each of the 52 aircraft in the first batch of planes – until it sees real progress.
…The acceptance and up-coming deliveries are a big deal for the KC-46A program, which has been mired in delays and controversy since Boeing won the Air Force’s KC-X competition in 2011. That decision itself followed nearly a decade of earlier, scandal-ridden Air Force attempts to procure a new tanker aircraft. Notably, in 2004, Darleen Druyun, a Boeing executive who had previously been the Air Force’s top procurement official, went to federal prison after receiving a conviction on corruption charges relating to an earlier tanker program.
The Air Force was supposed to have received a fleet of 18 KC-46As, the first tranche in the total initial buy of 52 aircraft, by the end of 2017 and reach an initial operational capability with the type shortly thereafter. Between 2011 and 2017, continuing technical difficulties…repeatedly pushed this schedule back. This continued into 2018, leading to an unusually public spat between the two parties over the program’s progress. Boeing’s contract is firm, fixed-price, and that company has already had to pay more than $3 billion of its own money to cover cost overruns. [emphasis mine]
Why is it that it seems to me that every single government program today is always “troubled” and “mired in delays and controversary?” Or maybe the question answers itself. These are government programs after all.
The one saving grace of this story is that the Air Force issued a fixed price contract here, so that the cost overruns fall on Boeing’s head, not the taxpayer (though Air Force errors in issuing the contract might negate this advantage). The delays however are shameful. It should not be so hard to build a tanker plane.