Lacking demand, Air Force may skip KC-Y tanker competition, Kendall says

WASHINGTON: A lack of demand for a new tanker variant, like the one proposed by Lockheed Martin, could push the Air Force to skip a competition and just continue buying the Boeing KC-46, the Air Force’s top civilian said today.

During a hearing in front of the House Armed Services Committee, Air Force Secretary Frank Kendall doubled down on previous statements that the Air Force could eschew the what’s known as the KC-Y competition, which would allow Lockheed to propose its LMXT tanker, a version of the Airbus 330 Multi-Role Tanker Transport.

“I love competition. I’m all for it. It’s the best tool have to reduce costs. But we actually have to have a demand for the other aircraft that’s being offered,” Kendall told lawmakers.

“And I’m trying to be as transparent and honest about this as I can be. It is not as certain as it was a year ago, let’s say, that we’re going to do a competition,” he said. “And I don’t want people to have a mis-impression about that. [But] we have not made a final decision yet.”

Kendall first suggested that the Air Force could forgo a competition in late March as the service put forward its fiscal 2023 budget request. The admission was surprising, as it’s very uncommon for Pentagon leaders to tip their hands to discuss future competitions — or potential sole source opportunities — while analysis is ongoing.

Air Mobility Command is currently defining the requirements for KC-Y, after which the Air Force will make its official decision whether or not to hold a competition, Kendall acknowledged.

Lockheed Martin has been bullish in promoting the LMXT, which is based on the A330 that lost the KC-X competition to Boeing in 2011. In January, the company announced plans to assemble the baseline aircraft in Mobile, Ala., before being converting it into a tanker in Marietta, Ga. — a prospect that could open up about 1,300 jobs in both states.

One of the lawmakers whose state would benefit if LMXT wins the KC-Y competition, Rep. Jerry Carl, R-Ala., implored Kendall to hold an open contest.

“We should open up the bid for the LMXT so they can be bid against this aircraft,” Carl said. “The Air Force has already started the propaganda; they’ve started throwing the little stories out, letting us know that they’re not going bid it out.”

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Boeing has struggled to keep the KC-46 program on cost and on schedule. The tanker won’t be declared operational until around 2024 due to continued technical problems. At the same time, Boeing has racked up more than $5 billion charges.

Kendall, however, noted that the tanker’s performance is improving, with the KC-46 now able to refuel about 85% of the aircraft types that will be serviced by it in the future.