Why You Should Read This Report. This report discusses efforts by Air Force acquisition officials to develop an acquisition strategy to ensure that the Air Force maintains competition throughout the life-cycle of the Air Force KC-X Aerial Refueling Tanker Aircraft Program (the KC-X Program). Background. On March 29, 2004, we issued DoD Inspector General Report No. D-2004-064, Acquisition of the Boeing KC-767A Tanker Aircraft, that identified deficiencies and shortcomings in the acquisition strategy that the Air Force developed to lease Boeing KC-767A Tanker aircraft. Since then, the Air Force revised its acquisition strategy and plans to recapitalize the aerial tanker fleet by developing three consecutive acquisition programs: KC-X, KC-Y, and KC-Z. The intention of those programs was to represent different tanker aircraft platforms. The KC-X Program is a major Defense acquisition program that will provide worldwide, day and night, and adverse weather aerial refueling to United States, allied, and coalition military aircraft. The KC-X aircraft are to replace approximately one-third of the warfighting capability provided by the current aerial refueling fleet of KC-135 tanker aircraft. On January 30, 2007, the Air Force issued a request for proposal for the KC-X Program. As of April 2007, the system development and demonstration phase of the program, which includes the manufacture of four test aircraft, is scheduled to begin in the first quarter of FY 2008 with low-rate initial production projected to begin in FY 2010. The Air Force plans to purchase 179 aircraft under the KC-X Program and for the first 43 aircraft, the Air Force projects program costs to total about $13 billion through FY 2013.