Boeing and the U.S. Dept. of Defense have extended an agreement for the contractor to continue providing “worldwide readiness” support for the U.S. Air Force C-17 Globemaster III. The 10-year, performance-based logistics (PBL) contract is valued at $23.8 billion, including potential options and incentives. Currently, the C-17 program support is funded through September 2024 with a Phase I award of $3.5 billion.
“While sustainment costs typically rise as a fleet ages, Boeing will lower operating cost per-flight-hour for the global fleet under the new agreement,” it stated.
The Boeing C-17 Globemaster III is a military transport aircraft developed for the USAF by McDonnell Douglas Corp. and in service since 1995. Boeing has manufactured the C-17 since it merged with McDonnel Douglas in 1997. The aircraft is used for tactical and strategic airlift, troop and cargo transport, and evacuation and airdrop missions.
A total of 275 are in service with the USAF, which has been in production since 1991 and serviced by Boeing since it merged with McDonnel-Douglas Corp. in 1997.
Under the agreement, Boeing will continue performing critical sustainment activities, including engineering, field support, and material management, and the contract provides additional funding for new work – such as international staffing to augment maintenance and cyber security work.
Boeing noted that it the new contract builds on over 20 years of C-17 sustainment, working with the USAF and partner firms to maintain high mission-capability rates and improve affordability.
"We are bending the cost curve on platforms like the C-17 by leveraging the breadth and depth of Boeing's services capabilities and expertise worldwide, and by applying digital tools and analytics to drive predictability and performance into every C-17 mission," according to Dan Gillian, vice president & general manager of U.S. Government Services for Boeing Global Services.
