ST. LOUIS, MO (KDKZ-TV) President Trump has reached a deal with Boeing to build 2 new presidential airplanes.
“I’m not paying $4 Billion for an airplane” – strong words from President Donald Trump back in December of 2016 regarding the price quoted to replace Air Force One with 2 new presidential planes.
According to White House Deputy Press Secretary Hogan Gidley, the original cost estimate was actually over $5 Billion for the planes, but that the president negotiated a $3.9 billion fixed-price contract. He went on to say that this agreement would save taxpayers more than $1.4 billion. Boeing, according to it’s website, is the largest manufacturer in Missouri.
The company issued a statement saying, “President Trump negotiated a good deal on behalf of the American People”.
The White House said the fixed-price contract would put Boeing on the hook for cost overruns. In 2011, Boeing agreed to a $4.9 billion fixed-price contract with the Air Force for a refueling tanker, the KC-46. Through late last year, cost overruns had reached about $2.9 billion in pretax costs.
The fixed-price contract negotiated by the President would prevent these cost overruns from being passed along to taxpayers.