The Air Force has been continually monitoring Boeings progress on their internal schedules, and as we get the contractors proposed revised time line we will continue to assess the milestones, Ed Gulick, a spokesman for the service said in an emailed statement.
Boeings proposed revised schedule wont be presented to Pentagon acquisition officials until early next year, after an Air Force evaluation, according to Gulick
Gulick, the Air Force spokesman, said, We will make an assessment, and then well be able to answer how many of the milestones the military may agree to revise.
said that while its too early to predict if the revised schedule will result in an increase to the government estimate of the development phases cost, the governments liability is capped at the ceiling price.
executives previously have said they expect to recoup the $1 billion in excess development costs during the programs $39 billion production phase.
The company is to report its third-quarter earnings on Oct. 22.
Boeing officials are currently seeking internal approval by the companys top leaders for a proposed revised schedule before coordinating it with the Air Force, Gulick
Then the Air Force will conduct a schedule risk assessment to examine the assumptions behind the proposed changes and their impact, he
Among the difficulties forcing Boeing to revise the schedule were a six-month delay in turning on the power of the prototype tanker, a reworking of about 5 percent of the initial aircrafts wiring after it wasnt installed to specifications and slower than planned completion of assembly line functional testing, Gulick
said in his
Wiring design and installation issues pushed the first flight of the initial prototype to about November from June, according to the Air Force.
is spending about $7.5 million a month of its management reserve designed for unanticipated problems, Gulick
The Air Force estimates that based on its current expenditure rate, the contractor will exhaust the reserve in March, he
When faced with diminished management reserves on the program, Boeing
has replenished it with its own funds.