The fiscal year 2015 budget justification documents that describe the Air Force's funding request in a detailed way were released this morning, providing much more information than has been previously available about all of its investment programs.
One program worth highlighting, and one of the Air Force's highest priorities, is the KC-46 aerial refueling tanker. The documents show not just development for the tanker, but procurement as well, and the service expects to spend close to $15 billion between FY-15 and FY-19 buying the aircraft.
As described in the budget documents, the Air Force plans to purchase 69 tankers over the next five years. The number varies from a low of seven in FY-15, to a high of 18 in FY-17 and then remaining relatively steady. The justification pages state that the service will buy 175 production tankers, which, coupled with four test aircraft, bring the KC-46 up to its program of record of 179.
The tanker's unit cost -- a figure sure to be cited for years -- is pegged at between $164 million and $190 million over the next five years, depending on quantities bought and other factors. Over the life of the program, the Air Force expects to pay $175 million per copy for the KC-46.
Boeing, the prime contractor, is due to deliver the first production aircraft in April of calendar year 2016. That means there may not be any overlap at all between developmental test and production, as developmental testing is scheduled to conclude in the second quarter of FY-16. Operational test will be held throughout FY-16 and FY-17, during which time the Air Force will accept a number of production tankers.
The documents also lay out the Air Force's procurement contracting and milestone strategy for the KC-46: The service and Boeing will go through two lots of low-rate initial production using fixed-price contracts before moving into a planned 11 years of full-rate production. That relatively conservative acquisition profile contrasts dramatically with a program on the other extreme, the F-35, which is still concurrently developing and producing aircraft and will run through more than 10 lots of low-rate production, some of them on cost-plus contracts rather than fixed-price agreements.