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A government official revealed on Tuesday that Boeing is trying to renegotiate its agreement to supply the White House with a price reduction agreement for two Air Force One aircraft, and said it will take an extra year for delivery.
The aircraft manufacturer signed a $3.9 billion fixed-price contract in 2018 after President Donald Trump called the initial $5 billion estimate “ridiculous” and posted “cancelled orders” on Twitter.
But due to the congressional testimony of Darlene Costello, the chief deputy assistant secretary for air force procurement, the contract encountered difficulties and the scale of the problem became clearer on Tuesday.
She told the House Military and Forecasting Subcommittee that Boeing had requested an extension of the contract for another year on the grounds of supplier issues and Covid-19.
These aircraft should have been ready by 2024.
Costello also said that the Chicago manufacturer has sent a letter of intent to the government requesting an increase in contract payments-this is the so-called “fair adjustment request.”
Boeing’s letter of intent is the first step in requesting an increase in the price of the plan, Costello said, “then we begin the negotiation process.”
After the company announced in April that it was canceling its contract with GDC Technics, a supplier of aircraft interiors, the company’s troubles with the plan surfaced because the company failed to “fulfil its contractual obligations.”
In the same month, GDC Technics filed for Chapter 11 bankruptcy protection. The two companies are now suing each other.
Boeing Report Expenses related to the program in the first quarter were $318 million.
Costello said that Congress will receive the latest news about whether the timetable will change in September, and the delivery time and cost will be renegotiated together.
“We have received notice from Boeing about their revised schedule. We are conducting a schedule risk assessment… when they are finished [the assessment] Later this summer, we will decide whether we need to make any adjustments to the schedule. “
Boeing did not immediately respond to a request for comment.
Democratic Rep. Joe Courtney from Connecticut said that these changes “disappointed all of us. We think this may be a government plan to get preferential treatment.”
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