Boeing has been awarded a follow-on contract by the US Department of Defense to help sustain C-17 Globemaster III strategic transport aircraft, in a deal that could be worth up to US$23.8bn including potential options and incentives over the next ten years.
Under the agreement, Boeing will continue performing sustainment activities, including engineering, field support, and material management, for the global fleet of 275 aircraft. The contract provides additional funding for additional work in areas such as cyber security.
Since entry into service with the US Air Force (USAF) in the mid-1990s, the type has since gone on to be exported to a number of other countries, including the UK, Canada, Qatar and India. Under the terms of the agreement, Boeing said in a September 29 release that it would lower operating cost per-flight-hour for the global fleet.
Dan Gillian, vice president and general manager of US Government Services for Boeing Global Services, said that the company was “bending the cost curve” on platforms such as the C-17, adding that data derived from military operators of the type was providing insight into improving readiness and fleet efficiency.
Boeing has been under contract for performance-based logistics (PBL) support of the C-17 fleet since 1998, with new US$3.5bn Phase I award expected to be ordered by the USAF through 2024. Under a PBL arrangement, a customer receives an agreed-to level of system readiness, as opposed to a traditional contract for specific spare parts and support services.