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Boeing works with Trump on jet cost concerns

Dennis Muilenburg
Boeing CEO Dennis Muilenburg speaks with reporters after meeting with Donald Trump. (Worldwide Trends via YouTube)

After meeting with President-elect Donald Trump at his Mar-a-Lago resort in Florida, Boeing CEO Dennis Muilenburg says he’s making a “personal commitment” to keep the cost of the next two Air Force One jets below $4 billion.

“We’re going to get it done for less than that, and we’re committed to working together to make sure that happens,” Muilenburg told reporters on Dec. 21.

Trump threatened in a Dec. 6 tweet to have the Air Force One deal canceled because “costs are out of control, more than $4 billion.” But since then, Muilenburg and other executives have smoothed over the dispute. Wednesday’s meeting in Palm Beach appeared to cement the rapprochement with Trump.

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Boeing and Lockheed protest bomber snub

Image: Northrop Grumman ad
Northrop Grumman has been given an Air Force contract to build the Long Range Strike Bomber – a concept that was touted in a Super Bowl ad. (Northrop Grumman photo)

Boeing and Lockheed Martin say they’ve filed a formal protest of last month’s Pentagon decision to award a bomber contract worth as much as $80 billion to a competitor, Northrop Grumman.

The stealthy Long Range Strike Bomber is scheduled for deployment in the 2020s as a replacement for the Air Force’s decades-old B-1 and B-52 bombers. The Boeing-Lockheed team and Northrop Grumman both put in proposals, and both teams saw the contract as crucial for their long-term military business.

The Air Force made its selection using a mostly classified process, and announced the award to Northrop Grumman on Oct. 27. In today’s statement, Boeing and Lockheed Martin said the process was “fundamentally flawed.”

“The cost evaluation performed by the government did not properly reward the contractors’ proposals to break the upward-spiraling historical cost curves of defense acquisitions, or properly evaluate the relative or comparative risk of the competitors’ ability to perform, as required by the solicitation,” the companies said.

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