Boeing Wins $4Bn Multiyear Order for 78 Super Hornet Fighters

Navy Awards Contract for Multi-Year Procurement of F/A-18 E/F Super Hornet Strike Fighter

(Source: US Navy; issued March 20, 2019)

The career of the Boeing Super Hornet fighter, which seemed to be headed for retirement a couple of years ago, has taken off again with the $4 billion order awarded yesterday by the US Navy for 78 new-build aircraft. (USN photo)

PATUXENT RIVER, Md. --- The U.S. Navy has awarded The Boeing Co. a contract for the procurement of 78 F/A-18 E/F Super Hornet aircraft; a multi-year procurement (MYP) of 72 between fiscal years 2019-2021, and six from fiscal year 2018.

Navy officials estimate this multi-year model saves a minimum of $395 million on this contract valued at approximately $4 billion.

“This multi-year purchase is a great illustration of employing team effort to drive out cost and maximize efficiency in government procurement,” said Rear Adm. Shane Gahagan, Program Executive Officer for Tactical Aircraft Programs. “This acquisition strategy secures cost savings to the Navy, and the contract provisions limit Navy liability while incentivizing the cost to the contractor."

“The program office was able to achieve significant savings while equipping our warfighters with the best capability on an accelerated timeline,” Gahagan said. “This is how we keep pace with our adversaries.”

There will also be opportunities in fiscal 2020 and fiscal 2021 to procure six more aircraft at the same reduced prices as those in MYP, via a variation in quantity.

The Fixed Price Incentive (Firm Target) (FPIF) contract limits the Navy’s liability and incentivizes the cost of production for industry. Under this contract, the Navy and its industry partners have agreed to share any monetary overrun or underrun once the production is completed.

Boeing’s F/A-18E/F Block III Super Hornet is the next step in the aircraft’s evolution. Equipped with an advanced cockpit system, advanced network infrastructure, reduced radar cross-section, conformal fuel tanks, and a 10,000-flight hour life span. It is the most lethal, interoperable, and sustainable Super Hornet model to date.

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Pentagon Contract Announcement

(Source: U.S. Department of Defense; issued March 20, 2019)

The Boeing Co., St. Louis, Missouri, is awarded a ceiling priced $4,040,458,297 modification to convert a previously awarded advanced acquisition contract (N00019-18-C-1046) to a fixed-price-incentive-firm-target multi-year contract.

The target price for this multi-year contract is $4,001,410,000.

This modification provides for the full-rate production and delivery of 78 F/A-18 aircraft, specifically 61 F/A-18E and 17 F/A-18F aircraft for fiscal years 2018 through 2021.

Work will be performed in El Segundo, California (61 percent); Hazelwood, Missouri (9 percent); Longueuil, Quebec, Canada (2 percent); Torrance, California (2 percent); Bloomington, Minnesota (2 percent); Ajax, Ontario, Canada (2 percent); Vandalia, Ohio (1 percent); Fort Worth, Texas (1 percent); Irvine, California (1 percent); Palm Bay, Florida (1 percent); Santa Clarita, California (1 percent); Grand Rapids, Michigan (1 percent); Greenlawn, New York (1 percent); Endicott, New York (1 percent); Marion, Virginia (1 percent); and various locations within the continental U.S. (13 percent).

Work is expected to be completed in April 2024.

Fiscal 2018 and 2019 aircraft procurement (Navy) funds in the amount of $1,557,334,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year.

The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

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Boeing Receives U.S. Navy Multiyear Contract for F/A-18 Production

(Source: Boeing Co.; issued March 20, 2019)

ARLINGTON, Va. --- With a three-year contract award for 78 F/A-18 Block III Super Hornets, Boeing will play a vital role in the U.S. Navy’s fleet modernization efforts.

The Block III configuration adds capability upgrades that include enhanced network capability, longer range, reduced radar signature, an advanced cockpit system and an enhanced communication system. Boeing will begin converting existing Block II Super Hornets to Block III early in the next decade. The fighter’s life also will be extended from 6,000 hours to 10,000 hours.

This new multi-year contract benefits the U.S. Navy and Boeing by allowing both to schedule future production and Navy officials estimate this multi-year model saves a minimum of $395 million on this contract valued at approximately $4 billion.

“This multiyear contract will provide significant savings for taxpayers and the U.S. Navy while providing the capacity it needs to help improve readiness,” said Dan Gillian, vice president of F/A-18 and EA-18G programs. “A multiyear contract helps the F/A-18 team seek out suppliers with a guaranteed three years of production, instead of negotiating year to year. It helps both sides with planning, and we applaud the U.S. Navy on taking the appropriate steps needed to help solve its readiness challenges.”

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