The chairman of the Senate Armed Services Committee said on Thursday he’s prepared to block the contract to buy the Air Force’s next bomber if it’s procured under a cost-plus contract.
Sen. John McCain, R-Ariz., said his biggest concern about the long range strike-bomber is the type of contract, which allows more flexibility for advanced technological projects where all costs may not be known ahead of time.
“It is an evil that has grown and grown and grown over the years and I will not stand for it,” McCain told reporters at a breakfast event in Washington hosted by the Defense Writers Group.
The Pentagon awarded the contract for the long range strike-bomber last year to Northrop Grumman. While much of the program is classified and few details have been released, the Air Force is expected to procure 80 to 100 bombers, valuing the contract at about $80 billion.
The losing team of Boeing and Lockheed Martin protested the decision, but the government this month denied their objections, leaving Northrop Grumman free to begin its work on the bomber.
Even though the contract has been signed, McCain said Congress still has the power to not authorize the procurement project.
“I will not authorize a program that has a cost-plus contract,” McCain said.
Asked about what potential issues that may raise since the contract has been finalized, McCain responded: “That’s fine with me, they can do whatever the hell they want. We authorize procurement.”
The Air Force said in a statement that it valued McCain’s oversight, but pointed out that the engineering and manufacturing development phase would be cost-plus. The initial production of the first five aircraft would be through a firm fixed-price contract.
“In developing the acquisition strategy and contract type for the LRS-B program, the program built upon lessons learned from previous acquisition programs,” the statement said. “The department looks forward to being able to provide the senator a complete briefing of the program at his earliest convenience.”
The Senate Armed Services Committee is scheduled to receive a closed hearing on the bomber program on Tuesday.
Those who support cost-plus contracts say it allows the project to adapt to rapid advances in technology.
But McCain pointed to commercial sector advances that haven’t been built under a cost-plus contract in Silicon Valley, such as the latest iPhone.
McCain said he has yet to receive a briefing from the Air Force on details of the contract, but that any argument they make will not change his mind since cost-plus contracts historically are problematic and over budget.
