WASHINGTON, D.C. — The U.S. Navy increased the budget for developing a new training jet by approximately $900 million. This action raised the price ceiling for the Undergraduate Jet Training System contract from $1.8 billion to $2.7 billion in May 2024.
In March, the Navy had solicited bids for the Undergraduate Jet Training System, establishing a $1.8 billion ceiling for the engineering and manufacturing development phase. The original price cap included funding for up to seven low-rate initial production aircraft. The May update to the request for proposals changed the price cap to $2.7 billion following a re-evaluation of costs.
Naval Air Systems Command stated: "The Government updated the price cap to reflect a change in the program cost estimate due to new information received." The Navy aims to order up to 216 aircraft for the undergraduate training program.
Jon Piatt, executive vice president for ISR, aviation and security at SNC, said in a podcast interview: "I am a little bit surprised that for something this important, for the next generation of trainer, that the Navy would make a decision to put a cap on a development program that is already going to be hamstrung by budget constraints in the first two years of what has currently been budgeted." He added, "It's a big challenge. It could be a big obstacle."
Several companies are competing for the contract. Textron Aviation Defense is offering the Beechcraft M-346N in partnership with Leonardo. A spokesperson for Textron Aviation Defense said, "The firm remains focused on delivering a proven training solution in the Beechcraft M-346N that meets the Navy's Undergraduate Jet Training System mission needs." SNC, Northrop Grumman, and General Atomics are jointly offering the Freedom Trainer, and Boeing is also competing.
No independent assessment was available for this report.