Report: Supplier is a drag on Boeing KC-46 tanker program

  • By Dan Catchpole Herald Writer
  • Thursday, March 31, 2016 4:37pm
  • Business

EVERETT — The Boeing Co.’s new KC-46 aerial refueling tanker continues to be hampered by late supplier deliveries, according to a federal oversight report released Thursday.

“A key supplier is not delivering aerial refueling systems on time, which could affect the timely delivery of aircraft,” the Government Accountability Office report says.

Boeing already is racing to deliver the first 18 combat-ready tankers to the U.S. Air Force by August 2017, as required by a fixed-price development contract that capped the cost to taxpayers at $4.9 billion. The delays have driven actual costs well past that mark. So far, the company has paid more than $1.2 billion in cost overruns.

Boeing might have to pay more to finish developing the tanker, which is based on the 767 and assembled at its plant in Everett. Based on the GAO’s program review in January, $924.3 million more is needed to complete research and development, the report says.

Due to the ongoing supplier problem and previous development delays, the Air Force has pushed back when it will tell the airplane maker to go to full-rate production — from October 2017 to March 2018, according to the Government Accountability Office’s report.

Boeing is expected to start making money on the program after it is in full-rate production. In all, the Air Force plans to buy 179 of the multi-role tankers, an order estimated to be worth about $49 billion.

The aerospace company still expects to deliver the first batch of tankers on time and is working with suppliers to “improve processes” and make sure they meet deadlines, Boeing spokesman Chick Ramey said.

The Air Force did not immediately respond to a request for comment.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Mattie Hanley, wife of DARPA director Stephen Winchell, smashes a bottle to christen the USX-1 Defiant, first-of-its kind autonomous naval ship, at Everett Ship Repair on Monday, Aug. 11, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
No crew required: Christening held for autonomous ship prototype in Everett

Built in Whidbey Island, the USX-Defiant is part of a larger goal to bring unmanned surface vessels to the US Navy.

Cassie Smith, inventory manager, stocks shelves with vinyl figures in 2020 at the Funko store on Wetmore Avenue in Everett. (Andy Bronson / The Herald)
Everett-based Funko reports $41M loss in the 2nd quarter

The pop culture collectables company reported the news during an earnings call on Thursday.

A Boeing 737 Max 10 prepares to take off in Seattle on June 18, 2021. MUST CREDIT: Bloomberg photo by Chona Kasinger.
When Boeing expects to start production of 737 MAX 10 plane in Everett

Boeing CEO says latest timeline depends on expected FAA certification of the plane in 2026.

Kongsberg Director of Government Relations Jake Tobin talks to Rep. Rick Larsen about the HUGIN Edge on Thursday, July 31, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Norwegian underwater vehicle company expands to Lynnwood

Kongsberg Discovery will start manufacturing autonomous underwater vehicles in 2026 out of its U.S. headquarters in Lynnwood.

Ben Paul walks through QFC with Nala on Saturday, July 14, 2018 in Everett, Wa. (Olivia Vanni / The Herald)
QFC to close Mill Creek location, part a plan to close similar stores across the nation

A state layoff and closure notice says 76 employees will lose their jobs as a result of the closure.

Logo for news use featuring the municipality of Snohomish in Snohomish County, Washington. 220118
Garbage strike over for now in Lynnwood, Edmonds and Snohomish

Union leaders say strike could return if “fair” negotiations do not happen.

Richard Wong, center, the 777-X wing engineering senior manager, cheers as the first hole is drilled in the 777-8 Freighter wing spar on Monday, July 21, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing starts production of first 777X Freighter

The drilling of a hole in Everett starts a new chapter at Boeing.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

Downtown Edmonds is a dining destination, boasting fresh seafood, Caribbean-inspired sandwiches, artisan bread and more. (Taylor Goebel / The Herald)
Edmonds commission studying parking fees and business tax proposals

Both ideas are under consideration as possible revenue solutions to address a $13M budget shortfall.

Skylar Maldonado, 2, runs through the water at Pacific Rim Plaza’s Splash Fountain, one of the newer features add to the Port of Everett waterfront on Tuesday, July 15, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
CEO: Port of Everett pushes forward, despite looming challenges from tariffs

CEO Lisa Lefeber made the remarks during the annual port report Wednesday.

Britney Barber, owner of Everett Improv. Barber performs a shows based on cuttings from The Everett Herald. Photographed in Everett, Washington on May 16, 2022. (Kevin Clark / The Herald)
August 9 will be the last comedy show at Everett Improv

Everett improv club closing after six years in business.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.