Boeing Usafc17 Promo 6154d11bbfe2d

Boeing Awarded $23.8B by USAF for C-17 Program

Sept. 29, 2021
The 10-year contract covers engineering, field support, and material management for the military transport-jet fleet, with Boeing promising to lower costs, optimize operations, and increase availability.

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.

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