“We need our industry partners on board,” with the new budget plan, said Chief of Staff Gen. Norton Schwartz on Thursday at AFA’s Air Warfare Symposium in Orlando, Fla. He asked industry to get behind the service’s new budget proposal and help make it work by keeping program costs down and schedules on track. There can be “no bonuses for . . . cost creep,” said Schwartz, but the Air Force will also do its part by keeping requirements stable. “That’s my job,” he said. While he said the current budget request—which places the Pentagon on a course to reduce its spending by $487 billion through Fiscal 2021—is “manageable,” deeper cuts “would send us back to the drawing board” on national strategy. The 2011 Budget Control Act’s looming sequestration clause—with more steep spending cuts—would be “indiscriminate salami slicing” that would be devastating to Air Force plans and attempts to remain capable at a smaller size, argued Schwartz.
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.