Welcome to today's Defense Business Briefing, your weekly roundup of the latest defense industry news.

Air Force lets Boeing off the hook for future cost growth on KC-46A tanker

The Air Force has released Boeing from future cost-growth liability on the KC-46A tanker, altering the fundamental terms of a 2011 contract that capped government costs at $4.9 billion and forced the defense contractor to pay out-of-hide for remedial work that so far totals $5.5 billion -- a move that comes as Boeing saddles the Air Force with a new major milestone delay.

Boeing logs $402 million KC-46 charge

Boeing reported its KC-46 tanker program saw a $402 million pre-tax charge in the final quarter of 2021, according to a breakdown of the company's Q4 results.

Rheinmetall invests in tech integration for U.S. vehicles

Rheinmetall plans to hire more engineers at its facility in Maine to develop situational awareness, fire control and turret technologies for the U.S. combat vehicle market, the company announced.

Boeing: T-7 EMD aircraft testing will begin later this year

As Boeing’s T-7 chief test pilot continues logging flights and checking off outstanding test points for the company’s new tactical trainer jet to replace the aging T-38, the company is preparing to incorporate its engineering and manufacturing development aircraft into the demonstrations later this year.

Northrop looks to pursue new USAF combat drone programs

Northrop Grumman is aiming to go after two forthcoming classified drone efforts the Air Force plans to include in its fiscal year 2023 budget request, with the company's chief executive saying executives "see those as opportunities that we will pursue."

Oshkosh expecting 2022 to be 'lull' year before bouncing back

Facing higher supply costs and lagging funding for the Joint Light Tactical Vehicle, Oshkosh is anticipating lower revenue in 2022 before seeing revenue increase in 2023 and 2024, company leaders said in a recent earnings call.

General Dynamics: Falling Army budgets will hit combat vehicle revenue

Pressure on the Army budget will probably reduce combat vehicle revenue at General Dynamics in the coming years, according to the company's chief executive.

Omicron variant causing Electric Boat's highest daily case rates

General Dynamics Electric Boat has experienced 40% of its total coronavirus cases in the last eight weeks fueled by the virus' omicron variant, according to Electric Boat president Kevin Graney.

Lockheed picks Alabama, Georgia for LMXT tanker assembly, conversion work

Lockheed Martin announced it plans to build its offering for the Air Force's KC-Y bridge tanker competition in Mobile, AL, and Marietta, GA, should its LMXT aircraft win the service's contract. 

Lockheed names Malave as CFO

Lockheed Martin announced Jay Malave will be the company's next chief financial officer, effective immediately.

Kastner to succeed Petters as HII's CEO

Huntington Ingalls Industries Chief Operating Officer Chris Kastner has been promoted to president and chief executive officer, the company announced.

The week ahead

Defense officials are slated to speak at key events around Washington this week.

DOD releases guidance on open-source software use for acquisition officials

Defense Department Chief Information Officer John Sherman has issued a memorandum detailing how acquisition officials across DOD should evaluate open-source software for defense contracts.

Air Force seeks input on Kendall's investment priorities

Air Force officials want industry feedback on improving mobile targeting and acquiring passive air base defense capabilities -- areas that represent two of service Secretary Frank Kendall's seven operational imperatives.