The Air Force One Deal May Be Less Rosy Than Claimed
Government Executive | February 28, 2018
An “informal” $3.9 billion deal for new Air Force One jets brokered by President Donald Trump and Boeing CEO Dennis Muilenburg might not be as clear a win for taxpayers as advertised. Although White House spokesman Hogan Gidley touted a “fixed-price” deal on Tuesday, only a “firm, fixed-price” contract would put all potential cost overruns squarely on Boeing. That��s why government officials had been pushing Boeing to sign a firm, fixed-price deal, according to sources with knowledge of the discussions. Without that kind of contract, the Air Force would have to eat at least some of the extra costs if the company fails to deliver the two highly customized planes on the budget, according to sources close to the program.