Boeing, U.S. Air Force Amend C-17 Contract
ST. LOUIS, Sept. 18, 2001 -- Boeing and the U.S. Air Force signed documents last week to formally convert the current C-17 multi-year contract to a Firm Fixed Price (FFP) contract and implement a best-acquisition-practices approach to production of the 35 C-17 aircraft yet to be delivered under the multi-year contract.
The three remaining production lots will now be executed as FFP versus the previous Fixed Price Incentive type contract. This change enables the team to save costs by reducing paperwork, and it aligns the current contract with the Boeing proposal for a potential follow-on C-17 contract.
"Acquisition reform has at its core doing smart things to meet our operational requirements better, cheaper and faster," said Darleen Druyun, principal deputy assistant secretary of the Air Force for Acquisition and Management. "And that is what we are doing today -- obtaining the same aircraft, saving money, partnering more closely with Boeing and limiting the government's risk." Under FFP, Boeing assumes the cost risk exclusively but, due to the application of best acquisition practices, is freer to control its own processes, manage the program in a more commercial-like mode, and eliminate costly reporting procedures.
"We are committed to providing the U.S. Air Force with the highest quality airplane possible, but at the lowest price we can achieve," said Howard Chambers, Boeing vice president and C-17 program manager. "As a team, we and our customer can provide the taxpayers with more for their money. Everybody wins. Quality isn't compromised, paperwork will be greatly reduced and processes that we both consider non-value-added at this stage of a mature program like the C-17 will be either streamlined or eliminated."
The remaining lots affected by the change are for aircraft 86-120. Deliveries of these aircraft begin in mid-2002 and continue through 2004. A follow-on contract would continue and expand on these commercial-like practices.
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Contact Info:
George Sillia
(562) 593-5233
george.p.sillia-jr@boeing.com
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