# KC-46A Tanker Squadrons — Program Element 0401221F

**Program element:** 0401221F  
**Component:** U.S. Air Force  
**Appropriation:** 3600 — RDT&E, Air Force  
**Budget Activity:** 5 — System Development & Demonstration  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/programs/0401221F

## Summary

U.S. Air Force funding ramps 318% to a $543.8M request in FY2027 — the program's peak, before stepping down 98% across the five-year plan. In the FY2027 defense authorization, the House cut 42% (to $315.8M); the Senate funded it in full; House appropriators cut 47% (to $287.7M). Boeing leads the industry work.

## Funding profile

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 76.3 |
| FY2026 | Enacted | 130.2 |
| FY2027 | Request | 543.8 |
| FY2028 | Outyear | 334.2 |
| FY2029 | Outyear | 92.3 |
| FY2030 | Outyear | 14.4 |
| FY2031 | Outyear | 10.0 |

> Estimate types are not summed — the profile mixes actuals, enacted law, the request, and outyear projections.

## Congressional marks (FY2027)

| Stage | Marked ($M) | Change ($M) |
|---|---|---|
| Request | 543.8 | — |
| House NDAA (HASC) | 315.8 | −228.0 |
| Senate NDAA (SASC) | 543.8 | +0.0 |
| House Approps (HAC-D) | 287.7 | −256.1 |

> FY2027 NDAA authorization marks, as of 2026-07-27. Not appropriations or final law.

## Projects (3)

| Project | Title | FY2025 actual | FY2026 enacted | FY2027 request | Move |
|---|---|---|---|---|---|
| 650013 | KC-46 Production Extension (PEx) | 0.0 | 23.8 | 267.6 | +1023% |
| 655271 | KC-46 RDT&E | 27.6 | 34.6 | 155.1 | +348% |
| 651120 | Pegasus Capability Improvements | 48.6 | 71.8 | 121.1 | +69% |

> Projects are the summable leaves: the program element total is their sum, never added to it.

### Project 650013 — KC-46 Production Extension (PEx)

When KC-46A procurement completes, the Air Force will maintain continuous recapitalization of the KC-135 fleet by procuring additional KC-46A tanker aircraft under the KC-46A Production Extension (PEx) project. The Air Force plans to use the KC-46A Capability Production Document as the most affordable requirements basis for Tanker Production Extension. The The KC-46A PEx program funding supports development of acquisition documentation, detailed acquisition plans, Request for Proposal (RFP) contracting activities, assessment and mitigation of risks and issues, and other studies and analysis. Funding includes efforts to define and mitigate Diminishing Manufacturing Sources & Materiel Shortages (DMSMS) and obsolescence issues in preparation for aircraft procurement.​ The KC-46A PEx effort ensures tanker availability for the warfighter and supports the Air Force's assessment and development of tanker requirements for the next Tanker Recapitalization program. This requirement supports performance of a full financial audit as required by title 10 U.S.C. Chapter 9A, Sec 240-D. This program element included all necessary expenses required to manage, execute, and deliver weapon system capability. The use of such program funds would be in addition to the civilian pay expenses budgeted in program elements 0605829F, 0605831F, 0605833F, and 0605898F.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** Boeing (243.5, 91%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| Diminishing Manufacturing Sources & Materiel Shortages (DMSMS) | — | 10.7 | 243.5 |
| Support | — | 13.1 | 24.1 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project 655271 — KC-46 RDT&E

Replacement of the legacy tanker fleet will take place in several stages. The initial tanker replacement increment of KC-46As will replace roughly a third of the current capability. Future programs will ultimately recapitalize the entire tanker fleet over a period of more than 30 years. The Air Force completed an Analysis of Alternatives (AoA) in Apr 2006 to determine the most appropriate strategy to recapitalize the aging fleet of aerial refueling aircraft. Based on this analysis, the Air Force concluded a strategy of full and open competition to select a commercial derivative replacement tanker aircraft would result in a best value tanker contract. To initiate the first phase of the tanker replacement, the KC-46A program released a final Request for Proposal (RFP) on 24 Feb 2010, and entered source selection on 9 Jul 2010. The KC-46A program held a Milestone B (MS B) Defense Acquisition Board (DAB) on 23 Feb 2011, received approval to enter Engineering and Manufacturing Development (EMD) from the Undersecretary of War (Acquisition and Sustainment) (USD[A&S]) on 24 Feb 2011, and awarded the KC-46A EMD contract to Boeing on 24 Feb 2011 to develop and procure 179 KC-46 aircraft. The program procured four RDT&E aircraft for integration and demonstration of capability which will ultimately be operationally fielded. During production, and with the recent program of record increase, the program plans to procure 184 production aircraft throughout 13 lots (+4 EMD aircraft) for a total of 188 aircraft. The KC-46A program held a MS C DAB on 12 Aug 2016 and received approval to enter Low Rate Initial Production (LRIP). The program has awarded LRIP lots 1-12 with lot 12 put on contract 25 Nov 2025 bringing total number of aircraft to 169 on the production contract. As of 24 Feb 2026, 103 aircraft have been delivered to the Air Force via DD250. Initial sustainment effort is provided via Interim Contractor Support (ICS) as the program is transitioning to organic sustainment.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** Boeing (120.6, 78%), 418th FLTS (33.9, 22%), Flight Safety Services (0.5, 0.3%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| KC-46A Aircraft Product Development | 7.5 | 19.4 | 120.6 |
| KC-46A Trainer Product Development - Aircrew Training System (ATS) | 0.2 | 0.7 | 0.6 |
| KC-46A Test & Evaluation | 17.0 | 14.4 | 33.9 |
| KC-46A Support | 3.0 | 0.1 | 0.0 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project 651120 — Pegasus Capability Improvements

The KC-46A will provide the capability to fuel joint and coalition receivers via a boom or drogue system on every mission and will also augment the airlift fleet with cargo, passenger, and aeromedical evacuation capabilities. The KC-46A will operate in day/night and adverse weather conditions to enable deployment, employment, sustainment, and redeployment of U.S. joint, allied, and coalition forces. The KC-46A will have communication, navigation, and surveillance equipment for worldwide operations; the capability to perform missions in chemical and biological environments; the ability to operate in up to medium threat environments with self-defense/protection (both active and passive) capabilities; and the necessary battlespace awareness to mitigate survivability threats. The KC-46A Block 1 Pegasus Advanced Communications Suite (PACS) program will satisfy Department of War (DoW), National Security Agency (NSA), Department of Transportation (DoT), and USAF mandates by upgrading legacy Tactical Data Link 16, Beyond Line-of-Sight (BLOS) Ultra High Frequency (UHF) Line-of-Sight (LOS) capabilities with next-generation Link 16 terminals and UHF secure, global, BLOS and anti-jam LOS satellite voice communications capabilities for the KC-46A weapon system. PACS enables compatibility and interoperability with current and planned future joint and allied forces while simultaneously increasing the survivability of secure global voice and data communications capabilities between Mobility AirForce (MAF) C2 agencies and MAF aircraft operating worldwide in or near contested environments. The KC-46A will continue to develop, field, and sustain warfighter capabilities to meet evolving threats and mission support requirements through Block or discrete modification or modernization programs depending on mission urgency, available funding, and programmatic and technical risks. Post-production requirements can include but will not be limited to avionics and structural systems/ architecture and subsystem updates, general mission equipment updates and procurement, general sustainment support, studies and analyses, future Tanker requirements simulation and training, and correction of field deficiencies. The next PACS communication upgrade requirements is the Block 2 modernization program and MAF connectivity.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** Boeing (69.5, 57%), KC-46 Program Office (4.9, 4.1%), Amentum (3.5, 2.9%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| KC-46A Block 1 Pegasus Advanced Communications Suite (PACS) | 20.0 | 23.9 | 26.4 |
| Mobility Air Forces (MAF) Connectivity | 4.9 | 0.0 | 27.4 |
| Aircraft Product Development | 6.4 | 31.2 | 45.2 |
| Government Test | 13.4 | 11.6 | 17.2 |
| Support | 4.0 | 4.9 | 4.9 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

## Where the FY2027 request goes

| Category | Share | $M |
|---|---|---|
| Industry primes | 88% | 476.3 |
| Other / unspecified | 12% | 67.5 |

**Top named industry performers:** Boeing ($433.5M, 80%), 418th FLTS ($33.9M, 6.2%).

> R-3 exhibit contract funding, not USAspending obligations.

## Mission & acquisition strategy

Replacement of the legacy tanker fleet will take place in several stages. The initial tanker replacement increment of KC-46As will replace roughly a third of the current capability. Future programs will ultimately recapitalize the entire tanker fleet over a period of more than 30 years. The Air Force completed an Analysis of Alternatives (AoA) in Apr 2006 to determine the most appropriate strategy to recapitalize the aging fleet of aerial refueling aircraft. Based on this analysis, the Air Force concluded a strategy of full and open competition to select a commercial derivative replacement tanker aircraft would result in a best value tanker contract.

The KC-46A Program acquisition strategy is to procure an existing commercial, Federal Aviation Administration (FAA) certified aircraft modified to meet USAF requirements. The KC-46A program released a final RFP on 24 Feb 2010, and entered source selection on 9 Jul 2010. The KC-46A program held a Milestone B (MS B) Defense Acquisition Board (DAB) on 23 Feb 2011, received approval to enter EMD from the Undersecretary of War (Acquisition and Sustainment) (USD[A&S]) on 24 Feb 2011, and awarded the KC-46A contract to Boeing on 24 Feb 2011 to develop and procure 179 KC-46A aircraft.

## Related program elements

- [0207133F — F-16 Squadrons](https://hitchintel.com/programs/0207133F) (Air Force)
- [1208248SF — Space Domain Awareness/Planning/Tasking SW](https://hitchintel.com/programs/1208248SF) (Space Force)
- [0605223F — Advanced Trainer Replacement T-7A](https://hitchintel.com/programs/0605223F) (Air Force)
- [0604234N — Advanced Hawkeye](https://hitchintel.com/programs/0604234N) (Navy)

## Source & machine access

- **Source:** FY2027 Department of the Air Force RDT&E Budget Justification, Exhibits R-2/R-3, PE 0401221F (PB PB2027); FY2027 NDAA committee marks (as of 2026-07-27).
- **MCP:** `mcp.hitchintel.com` — `budget_get_program_element(pe="0401221F")`.

*HitchAI is an independent intelligence service, not affiliated with the U.S. Department of Defense. Budget figures are requests/estimates, not obligations.*