Unit Cost of Latest Boeing MH-47 Chinook Exceeds $57M
(Source: Defense-Aerospace.com; posted July 19, 2018)
PARIS --- The US Defense Department is spending over $229.8 million to buy four Boeing MH-47G Block II helicopters for the Special Operations Command, or over $57 million each.

An analysis of recent Pentagon contract awards shows that, since June 28, Boeing has been awarded four separate contracts for the MH-47 Block II program, for a total of $493.6 million – that’s almost half a billion dollars.

Over half of this total, or $229.8 million, has been awarded to buy the four new-build MH-47 “to satisfy an urgent need to sustain Special Operations Forces heavy assault, rotary wing aircraft and to mitigate the impact of the MH-47G aircraft availability in light of increased SOF operational demands,” according to the announcements.

For no obvious reason, the contracts are split between U.S. Special Operations Command and U.S. Army Contracting Command, which has the effect of making it more difficult to track contract awards by service.

Furthermore, Boeing’s July 11 press release said it “has received a $139.8 million contract to provide four MH-47G Block II Chinook helicopters,” while the Pentagon’s related contract announcement, also released on July 11, states the value as “$131,142,877 for the procurement of four MH-47G Block II aircraft,” a difference of $8.7 million, or almost $2.2 million per aircraft.

These are the contracts awarded since June 25 for the MH-46G Block II program:

-- July 18, 2018:
The Boeing Co., Ridley Park, Pennsylvania, was awarded a maximum $264,000,000 indefinite-delivery/indefinite-quantity contract for engineering support services for the MH-47 helicopter in support of U.S. Special Operations Command.
This requirement will furnish all labor, services, personnel, data, transportation, equipment, facilities and materials required to accomplish the work and perform engineering tasks.
Contract funds will not expire at the end of the current fiscal year.
The first task order of the contract in the amount of $120,497 is funded with fiscal 2017 procurement funds and is multiyear.
All subsequent task orders shall be funded with appropriate funding. This contract has a five-year ordering period.
The majority of the work will be performed in Ridley Park, Pennsylvania.
U.S. Special Operations Command Contracting office, MacDill Air Force Base, Florida, is the contracting activity (H92241-18-D-0002).

-- July 13, 2018:
The Boeing Co., Ridley Park, Pennsylvania, was awarded a $17,820,000 cost-plus-fixed-fee type contract (W91215-16-G-0001) to procure the long lead components and parts in support of the MH-47G Block II renewal program.
This action is required to satisfy an urgent need to sustain Special Operations Forces heavy assault, rotary wing aircraft and to mitigate the impact of the MH-47G aircraft availability in light of increased SOF operational demands.
Fiscal 2018 aircraft procurement (Army) funds in the amount of $17,820,000 shall be obligated at time of award. Contract funds will not expire at the end of the current fiscal year.
The majority of the work will be performed in Ridley Park, Pennsylvania.
The subject delivery order is a non-competitive award and is in accordance with Federal Acquisition Regulation 6.302-1.
U.S. Special Operations Command, MacDill Air Force Base, Florida, is the contracting activity. The contract number and delivery order are W91215-16-G-0001/H92241-18-F-0031.

-- July 11, 2018:
The Boeing Co., Ridley Park, Pennsylvania, was awarded a $131,142,877 modification (P00003) to contract W91215-16-G-0001 for the procurement of four MH-47G Block II aircraft.
Work will be performed in Ridley Park, Pennsylvania, with an estimated completion date of June 29, 2020.
Fiscal 2018 other procurement; Department of Defense; and other procurement (Army) funds in the amount of $131,142,877 were obligated at the time of the award.
U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

-- Boeing Co. July 11 press release:
Boeing has received a $139.8 million contract to provide four MH-47G Block II Chinook helicopters to the U.S. Army Special Operations Aviation Command.
“The Army uses the MH-47G for some of its most difficult and challenging missions,” said Pat Donnelly, director, H-47 Domestic and Foreign Military Sale Programs.
“By incorporating key Block II features, we significantly extend the service life, enhance performance, and maintain Chinook’s position as the world’s preeminent special operations helicopter.”
These helicopters mark the start of a Block II production run expected to extend into the late 2020s.


-- June 28, 2018:
The Boeing Co., Ridley Park, Pennsylvania, was awarded an $80,729,096.00 cost-plus-fixed-fee delivery order for four new-build MH-47G rotary wing aircraft.
This action is required to satisfy an urgent need to sustain U.S. Special Operations Forces (SOF) heavy assault, rotary wing aircraft and to mitigate the impact of the MH-47G aircraft availability in light of increased SOF operational demands.
This delivery order is a non-competitive award in accordance with Federal Acquisition Regulation 6.302-1.
Fiscal 2018 procurement funds in the amount of $33,729,096; and fiscal 2018 aircraft procurement, Army (APA) funds in the amount of $47,000,000 shall be obligated at time of award.
A majority of the work will be performed in Ridley Park, Pennsylvania.
U.S. Special Operations Command, Tampa, Florida, is the contracting activity. The contract number and delivery order are W91215-16-G-0001/H92241-18-F-0022.

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