The Procurement Fiasco

The U.S. Air Force badly needs a new tanker. A competition was run and the Air Force picked the Boeing KC-46, which is based on the 767 platform, an airplane that has been flying for a long time. Its competitor was the Airbus/EADS A330 MRTT based on another passenger jet that has been around for awhile, the A330. 

The Air Force picked the Boeing aircraft, which is now significantly past development deadlines and way over budget. The picture shows a British RAF A330 MRTT on an everyday mission (over the U.S. no less) doing what it is supposed to do. What is the problem with military procurement? What is the problem with Boeing? It seems that neither can find their rear-ends with both hands. The U.S. military is heading into a major equipment cycle. Do we need to offshore it all?