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Boeing get $4 Billion contract with US Navy for 78 Super Hornets F / A-18E / F Block III
21 MARCH 2019
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 of 72 between fiscal years 2019-2021, and six from fiscal year 2018.
![[IMG]](/vb/proxy.php?image=http%3A%2F%2Fwww.airrecognition.com%2Fimages%2Fstories%2Fnews%2F2019%2Fmarch%2FBoeing_get_4_Billion_contract_with_US_Navy_for_78_Super_Hornets.jpg&hash=a4e711cd02f21746d79ce9de88b3a53a "[IMG]")
Two U.S. Navy F/A-18E Super Hornets The aircraft in the background is deploying infra-red flares
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 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.
Boeing get $4 Billion contract with US Navy for 78 Super Hornets F / A-18E / F Block III
21 MARCH 2019
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 of 72 between fiscal years 2019-2021, and six from fiscal year 2018.
Two U.S. Navy F/A-18E Super Hornets The aircraft in the background is deploying infra-red flares
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 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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