Trial Balloon:

May 21, 2007

Lockheed Martin has proposed giving the Air Force a fixed price to pursue the reliability enhancement and re-engining program for a finite number of C-5 airlifters. Roxana Tiron of The Hill reports that Lockheed on May 17 offered to RERP 108 C-5s for a total of $11.6 billion, which is about $3 billion shy of the projected nearly $15 billion. Lockheed officials are trying to counter the recent House Armed Services Committee OK for the Air Force to retire the older C-5As in favor of purchasing more Boeing C-17s.

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