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Boeing Wins $891M for C-17 Support (Aug. 30)

McDonnell Douglas Corp., Long Beach, Calif., is being awarded an $891,628,526 firm-fixed price contract modification.

This action is the exercise of the FY05 option for the continued performance of the Globemaster III sustainment partnership. These options will be funded by separate funding actions as FY05 funds are received. C-17 fleet sustainment C-17 product support will be managed through long term performance-based partnership between Boeing and the Air Force, which places all performance risk on the contractor to provide sustainment support at continuously raised benchmarked levels.

Boeing will be contracted to provide Total System Support Responsibility (TSSR), making Boeing responsible for all contracted sustainment actions to include parts/item management and depot level repair of airframe and sub-components.

Boeing will adhere to 6 contract performance metrics, which will ultimately increase C-17 aircraft availability to the war fighter every year. In addition to TSSR, Boeing will partner with the Air Force by making $62 million contractual investment commitments into the ALCs. Boeing investments in the ALCs will allow increased work to migrate from currently performed commercial repair sources to being performed at the ALCs.

At a minimum, Boeing will partner with the Air Logistics Center for Core designated workloads, and additional partnering on non-Core workloads is highly encouraged when the Air Logistics Centers are deemed best value. No funds have been obligated. This work will be complete by September 2005.

The Headquarters Aeronautical Systems Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8614-04-C-2004 P00028).

Pentagon Contract Announcement