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Military

GE Awarded $2 Billion Contract From U.S. Navy For F414 Engines

July 2, 2002

EVENDALE, Ohio -- The U.S. Navy has awarded a five-year Multi-Year Procurement (MYP) contract to GE Aircraft Engines (GEAE) for F414 engines, devices and spare modules.

The contract is for a planned quantity of 480 install engines and devices. The initial award, including install engines and devices, spare engines, devices and modules for fiscal year 2002, and engineering support, is valued at $1.917 billion.

The contract provides the flexibility to adjust the engine and device quantities between 420 and 625 units to meet the needs of the U.S.Navy. The contract also includes options to procure additional spare engines, devices and modules on an annual basis. These options will result in an additional $161 million dollars if fully exercised.

Deliveries will take place from March 2003 through February 2008. The F414 engine powers the U.S. Navy F/A-18E/F Super Hornet Strike Fighter. Of the 299 F414 engines covered by previous contracts, 230 have been delivered to power aircraft based at Naval Air Station Lemoore, California, and Naval Test Center China Lakes, California.

The F414 engine is currently rated at 22,000 pounds (98 kN) thrust. However, GEAE has established a growth roadmap that increases thrust by as much as 25 percent. In addition, GEAE is developing component technology for the F414 Enhanced Durability Engine (F414 EDE) that reduces life-cycle costs while maintaining current performance.

F414 engines are produced at the GEAE plant in Lynn, Massachusetts, from components manufactured at Lynn and at GEAE plants in Ohio, Vermont, New Hampshire, Kentucky, North Carolina and New Mexico, as well as by outside suppliers.

GE Aircraft Engines is the world's leading manufacturer of jet engines for military and civil aircraft, including engines produced by CFM International, a 50/50 joint company of Snecma Moteurs of France and GE. GEAE also manufactures gas turbines, derived from its highly successful jet engine programs, for marine and industrial applications. In addition, GEAE provides comprehensive maintenance support, through its GE Engine Services operation, for GE and non-GE jet engines in service throughout the world. Visit GEAE online at www.geae.com.



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