Boeing Wins a $5.3-Billion Navy Contract

Sept. 28, 2010
Multi-year program for F/A-18s and new EA fighters

Boeing has been awarded a new $5.297-billion contract by the U.S. Navy to supply 124 F/A-18E/F Super Hornet fighter jets and EA-18G Growler aircraft. Of the total, Boeing will deliver 66 Super Hornets and 58 Growlers to the Navy from 2012 through 2015. It’s the third multi-year agreement for Boeing concerning the Navy’s primary strike fighter jet, F/A-18E/F.

The new supply agreement is a fixed-price, incentive-fee contract that allows Boeing to increase its profit by cutting production and delivery cost. Overrun costs will be shared with the government.

According to Boeing’s F/A-18 and EA-18 programs vice president Kory Mathews, "Procurement of these 124 aircraft through a multi-year contract takes advantage of the full efficiencies of Boeing’s production and supplier operations, which will generate more than $600 million in cost savings for U.S. taxpayers."

The new contract is the third multi-year agreement between Boeing and the Navy for production of the F/A-18E/F, the Navy's frontline strike fighter, which delivers forward-deployed air combat capability around the world from the decks of 11 Navy aircraft carriers, including ongoing missions in Afghanistan.

Boeing delivered 210 Super Hornets to the Navy during its initial F/A-18E/F multi-year program, 2000-2004, and will have delivered 257 aircraft during its second MYP, which continues through 2011.

The EA-18G will have its first combat deployment later this year. It’s designed to conduct advanced airborne electronic attack (AEA) missions to support Navy and joint force requirements.

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