C-17 Engine Support Contract Worth About $1.4 Billion

by: Matthew Potter
August 31, 2009

Category: Boeing, Business Line, Companies, Congress, Contract Additions, Contract Awards, Department of Defense, Events, logistics, Military Aviation, Pratt & Whitney, production program, Services, U.S. Air Force | RSS 2.0

Last week we wrote about the award to Boeing of the C-17 maintenance support contract. Now the Air Force is getting ready to award that company and Pratt & Whitney a contract to support the engines of the transport fleet. If all options on the contract are exercised it could be a three year one worth $1.4 billion.

Because C-17 production has been ended by the Obama Administration these kind of support contracts are the only work available for the aircraft. Both Boeing and P&W are looking at issues due to the decision to cancel the F-22 as well. P&W made the engines for that aircraft.

Most programs cost is the long term support and this is certainly a viable business model for many companies. There is no requirement that the be done by the Original Equipment Manufacturer (OEM) although in this case the OEM is getting the work. In the past especially as the equipment gets older other companies are able to get the business.

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