(St. Louis, August 26, 2008) -- The Boeing Company [NYSE: BA] has been awarded a five-year U.S. Army contract valued at $4.3 billion for 181 CH-47F Chinooks and 10 additional Chinooks under Fiscal Year 2008 supplemental funding. There are options in the award for an additional 24 aircraft over the course of the contract.
"This multiyear award will yield a cost savings of more than $449 million for the U.S. Army and taxpayers," said Jack Dougherty, vice president, Boeing H-47 Programs. "This also builds security into our production schedule for the next five years, stabilizing the work force for Boeing and for our supplier partners in more than 45 states."
"The Army is committed to providing an outstanding CH-47F Chinook aircraft to our soldiers in the field," said Col. Newman Shufflebarger, Army project manager for Cargo Helicopters. "This multiyear award not only allows the Army to field this important aircraft at a substantial savings, but enabled the contractor to enter long-term agreements for specialty metals, to include titanium, which significantly reduced long-lead times for these critical materials. The Army was able to reduce the lead time associated with a new-build aircraft by six months."
Also from the U.S. Army, Lt. Col. Thomas H. Todd III, product manager for CH-47F, said, "This multiyear settlement is the result of the tireless efforts of government and Boeing representatives. It ensures that our soldiers will maintain a technological advantage over our adversaries when it comes to heavy-lift missions."
"A long-term contract commitment is good for the warfighter, the Army customer and U.S. business," said Ken Eland, chief engineer for Boeing Tandem Rotor Programs and capture team leader for the company's CH-47F multiyear pursuit. "This award enables Boeing and our Team Chinook partners to make capital investments to reduce lead times for parts and components, improve parts availability and provide for a more accurate delivery schedule, which will enable greater precision in fielding the Chinook to U.S. Army units."
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