Boeing's fixed-price contracts with the Air Force are still burning cash

Boeing's defense unit has logged $222 million in losses since January on two major firm fixed-price contracts with the Air Force, the KC-46A and T-7A, Chief Financial Officer Brian West told investors today during a first-quarter earnings call. The KC-46 Pegasus tanker program bled another $128 million while the new T-7 Red Hawk trainer shed $94 million, West said. These firm fixed-price contracts require Boeing to absorb any additional costs when technology development goes over budget and can often cause...

CRS report on Navy amphibious ship programs

The April 24, 2024 Congressional Research Service report discusses issues for lawmakers regarding the Navy's purchases of LPD-17 Flight II amphibious ships.

205815

GD execs: Submarine supply chain needs funding for second Virginia shipset in FY-25

With the Navy requesting only one Virginia-class submarine in fiscal year 2025, it is important that the sea service also fund a second, full shipset of Virginia materials to sustain the submarine supply chain, General Dynamics executives said today. “We have long-lead material on Virginia that is very important to the supply chain and the extent that we can ensure that we get a full second Virginia shipset so that we’re buying at two-a-year is very important for the overall...

DOD announces $1B in aid for Ukraine following passage of supplemental spending package

The Defense Department has announced $1 billion in military aid for Ukraine following the passage of a $95 billion security supplemental spending package that President Biden signed into law today. “This package will surge munitions, weapons and equipment forward to support Ukraine’s ability to defend its frontlines, protect its cities and counter Russia’s continued attacks,” DOD said. “With the bipartisan support of Congress, Ukraine can count on strong and resolute U.S. leadership to provide consistent security assistance support -- together...

Air Force to make two CCA awards today

Air Force Vice Chief of Staff Gen. James Slife said today that the service intends to award Collaborative Combat Aircraft contracts to two vendors. “This afternoon the Air Force will be announcing two option awards to vendors that have been part of our CCA increment 1 acquisition program that has been underway now for some time,” he said at an event hosted by the Center for Strategic and International Studies. The five companies vying for the contract are: Anduril, Boeing,...

Senate passes defense supplemental in heavy bipartisan vote

The Senate voted 79-18 last night in support of a $95 billion defense supplemental package that would aid Ukraine, Israel and Taiwan, while also directing about $50 billion into the U.S. defense industrial base. Defense Secretary Lloyd Austin has said $50 billion of the supplemental funds will flow through more than 30 states. The Pentagon, meanwhile, is standing by to restart its transfers of U.S. weapons to Ukraine, where military officials say the battle against an ongoing Russian invasion has...

DOD makes new bet on missile defense laser cooling technology

The Defense Department is placing a bet on new laser-cooling technology for missile defense capabilities that carries such promise that the Pentagon will not disclose the company associated with the $11 million contract award. Still, Under Secretary of Defense for Research and Engineering Heidi Shyu last week touted the project during public remarks at a missile defense conference sponsored by the National Defense Industrial Association as an illustration of a new initiative under the Accelerate the Procurement and Fielding of...

Navy to advance amphibious warship block buy in the coming weeks

The Navy is planning to use multiship procurement to buy four amphibious warships and aims to put the vessels on contracts within a matter of weeks, according to Navy Secretary Carlos Del Toro. “We hope to be able to take the four-ship buy basically, with the LPDs and the one LHA that’s at play here and be able to negotiate as low of a price as we possibly can. So, I think you’ll see something come out of this in...

DOD's sixth FY-25 legislative proposals package

On April 19, 2024 the Defense Department submitted its sixth package of legislative proposals.

220915

Navy wants to delay ADG system installation on DDG-51s until next generation

The Navy wants to delay the addition of an advanced degaussing system on Arleigh Burke-class destroyers and install it on the next generation of destroyers -- a move it says would provide the service flexibility to balance warfighting capabilities with the expense and schedule constraints of future destroyer procurement. The Fiscal Year 2022 National Defense Authorization Act required the Navy to incorporate the system -- which helps manage magnetic fields on ships -- in FY-25 and beyond for Flight III...

Not a subscriber? Sign up for 30 days free access to exclusive, behind-the-scenes reporting on defense policy and procurement.

Log in to access this content.