The aerospace industry takes very seriously the Pentagon’s push to cut costs and reduce overhead, said Aerospace Industries Association chief Marion Blakey. Half-jokingly calling it “Carter’s Crusade” after Pentagon acquisition chief Ash Carter, Blakey said industry is scrubbing its costs as never before. “We truly believe reducing costs is a DOD-industry partnership,” she said last week at AFA’s Air & Space Conference. Contractors, she continued, know “the entire aerospace industry depends on it.” Toward that end, she suggested continuing reductions in required paperwork, expanded use of performance-based logistics, and more multi-year procurement contracts as three obvious areas where big money can be saved. She noted that C-17 operating costs have come down by 28 percent using PBL, and that the recent F/A-18E/F multiyear deal produced $600 million in savings.
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.