Fixed price for LRS-B

Strong indication of prototype activity

The boss of USAF acquisition William LaPlante spoke at a Senate Armed Services Committee hearing on March 19 and indicated that the forthcoming Long Range Strike – Bomber (LRS-B) will be structured for a fixed-price production phase. Fixed-price contracts have tended to be associated with mature programs where cost implications are well understood thorough knowledge of development phases. While the competitors Lockheed Martin/Boeing and Northrop Grumman will have spent a considerable amount of time and money on their respective bids, and with a development phase planned to start following contract award, it suggests that the respective bids will be based on fairly mature technology and research. In an interview with Air Force Magazine last year, Mr LaPlante said the LRS-B would not be chosen based on drawings alone but by evaluating ‘variants … of technical articles; … prototypes, if you want to call it.’ This indicates that both parties may well have technology demonstrators that are already flying…

USAF has said it plans to decide the winner of the LRS-B competition in June.

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