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.
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.