FROM: U.S. DEFENSE DEPARTMENT
KC-46 Tanker 'On Cost, On Schedule,' Acting AF Secretary Says
By Jim Garamone
American Forces Press Service
WASHINGTON, Sept. 9, 2013 - The Air Force's KC-46 air refueling tanker project is "on cost and on schedule," Acting Air Force Secretary Eric Fanning said here today.
In an interview with American Forces Press Service, Fanning said the program "is in a real healthy place." The Air Force will buy 179 of the aircraft to replace the venerable KC-135 refuelers, which generally are older than the crews flying them.
The Air Force announced selection of the Boeing tanker in February 2011.
Fanning visited Boeing's KC-46 plant in Everett, Wash., recently. Two KC-46s now in production there will be ready for flight next year. The KC-46 is based on the Boeing 767 aircraft, which had its first flight in 1981. The company has 32 years of experience with the plane.
"It's a commercial derivative concept, and we are doing more on the line than we would normally do, which is why we are able to meet the timelines," the acting secretary said. "Everything is coming together really well."
The biggest reason this program is such a success is because the requirements were clearly defined and they were locked down, he said. The service has resisted adjusting the requirements during the course of development.
Still, there has to be flexibility to adjust for the learning process and that is also a part of the contract, Fanning said.
The acting secretary stressed that the new tanker is important for the Air Force. "When we went into sequestration, it was priority No. 1 to protect this," he said. "We didn't want to reopen it, because it's got very favorable terms for the Air Force."
The tanker will replace one-third of the refuelers in the Air Force. Follow-on contracts – for what the service today calls KC-Y and KC-Z tankers – will follow, he said.
Fanning noted that while the KC-46 is an Air Force project and capability, all service members will benefit from it. "The Air Force moves everyone and everything," he said. "All the other services depend on the Air Force to get their people and stuff around the globe."
The KC-46 will make refueling aircraft of all services and allies easier, Fanning said. "It is truly one of the most important backbone platforms for the joint fight," he added. "No other country can do this."
Fanning said the Air Force mobility story is "fascinating," adding that in visits to bases, he notices that the service's efficiency and reach rival those of successful companies such as UPS or FedEx.
Airmen are proud of that, Fanning said, and are excited that there is progress on getting the new refuelers. "They take [the KC-46] as a commitment by the Air Force to their community," he said.
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Showing posts with label COST. Show all posts
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Wednesday, September 11, 2013
Sunday, June 23, 2013
SENATE PANEL TOLD JOINT STRIKE FIGHTER PRICE COMING DOWN
FROM: U.S. DEPARTMENT OF DEFENSE
Joint Strike Fighter on Track, Costs Coming Down, Kendall Says
By Jim Garamone
American Forces Press Service
WASHINGTON, June 19, 2013 – Indications are that the F-35 joint strike fighter program -- the most expensive aviation program in Defense Department history -- is on track, the undersecretary of defense for acquisition, technology and logistics told a Senate panel here today.
Testifying before the Senate Appropriations Committee’s defense subcommittee this morning, Frank Kendall said the F-35 will be the premier strike aircraft for the Air Force, Navy and Marine Corps.
"The department’s and my focus has been on the efforts to control costs on the program, and to achieve a more stable design so that we could increase the production rate to more economical quantities," Kendall told the senators. "Indications at this time are that these efforts are succeeding."
The program, begun in President George W. Bush’s administration, is about 90 percent through the development program and 40 percent through flight testing. Kendall said he anticipates being able to complete the development effort within the planned cost and schedule. "However, we may need to make some adjustments as events unfold," he added. "On the whole, however, the F-35 design today is much more stable than it was two or three years ago."
Production of the aircraft was in real jeopardy in 2011, the undersecretary said, amid uncertainty in how design issues would be solved. "The F-35 is one of the most concurrent programs I have ever seen, meaning that there is a high degree of overlap between the development phase and the production phase of the program," he said.
Kendall said he believes those questions have been answered, and he told the committee he will review the program later this year to decide whether to increase the production rate significantly in 2015, as is currently planned.
"At this point, I am cautiously optimistic that we will be able to do so," he said.
Costs per aircraft are coming down, Kendall said. "Since 2010, production costs have been stable and are coming down, … roughly consistent with our estimates," he said. "We have been tightening the terms of production contracts."
The aircraft builder -- Lockheed-Martin -- is required to share costs associated with design changes due to concurrency, and the Defense Department is negotiating the next two buys. "In these lots, and all future lots, Lockheed will bear all of the risks of overruns," Kendall said. "At this point we have a solid understanding of the production costs, and believe that they are under control."
The undersecretary said he believes sustainment costs represent the greatest opportunity to reduce life cycle costs of the F-35 going forward.
"We are now focused on ways to introduce competition, and to take creative steps to lower those costs as well," he said. "The bottom line is that since 2010, we have been making steady progress to complete development, stabilize the design, and control costs."
Much remains to be done with the program, and surprises may still happen, Kendall acknowledged, but he added that he is "cautiously optimistic that we will be able to increase production to more economical rates beginning in 2015 as planned."
Joint Strike Fighter on Track, Costs Coming Down, Kendall Says
By Jim Garamone
American Forces Press Service
WASHINGTON, June 19, 2013 – Indications are that the F-35 joint strike fighter program -- the most expensive aviation program in Defense Department history -- is on track, the undersecretary of defense for acquisition, technology and logistics told a Senate panel here today.
Testifying before the Senate Appropriations Committee’s defense subcommittee this morning, Frank Kendall said the F-35 will be the premier strike aircraft for the Air Force, Navy and Marine Corps.
"The department’s and my focus has been on the efforts to control costs on the program, and to achieve a more stable design so that we could increase the production rate to more economical quantities," Kendall told the senators. "Indications at this time are that these efforts are succeeding."
The program, begun in President George W. Bush’s administration, is about 90 percent through the development program and 40 percent through flight testing. Kendall said he anticipates being able to complete the development effort within the planned cost and schedule. "However, we may need to make some adjustments as events unfold," he added. "On the whole, however, the F-35 design today is much more stable than it was two or three years ago."
Production of the aircraft was in real jeopardy in 2011, the undersecretary said, amid uncertainty in how design issues would be solved. "The F-35 is one of the most concurrent programs I have ever seen, meaning that there is a high degree of overlap between the development phase and the production phase of the program," he said.
Kendall said he believes those questions have been answered, and he told the committee he will review the program later this year to decide whether to increase the production rate significantly in 2015, as is currently planned.
"At this point, I am cautiously optimistic that we will be able to do so," he said.
Costs per aircraft are coming down, Kendall said. "Since 2010, production costs have been stable and are coming down, … roughly consistent with our estimates," he said. "We have been tightening the terms of production contracts."
The aircraft builder -- Lockheed-Martin -- is required to share costs associated with design changes due to concurrency, and the Defense Department is negotiating the next two buys. "In these lots, and all future lots, Lockheed will bear all of the risks of overruns," Kendall said. "At this point we have a solid understanding of the production costs, and believe that they are under control."
The undersecretary said he believes sustainment costs represent the greatest opportunity to reduce life cycle costs of the F-35 going forward.
"We are now focused on ways to introduce competition, and to take creative steps to lower those costs as well," he said. "The bottom line is that since 2010, we have been making steady progress to complete development, stabilize the design, and control costs."
Much remains to be done with the program, and surprises may still happen, Kendall acknowledged, but he added that he is "cautiously optimistic that we will be able to increase production to more economical rates beginning in 2015 as planned."
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