The State Department has given NATO the green light to buy equipment and logistics support for Boeing-built (NYSE: BA) C-17 aircraft and Large Aircraft Infrared Countermeasures system components under two foreign military sales agreements worth approximately $333.5 million combined.
The NATO Support and Procurement Agency requested to purchase follow-on technical and maintenance support services for three C-17 planes as well as spare and repair parts, inspections, retrofit and modification, in-country contractor services and training support under a potential $300 million FMS contract, the Defense Security Cooperation Agency said Friday.
Boeing will serve as the prime contractor in the transaction that seeks to help NATO expand strategic airlift and deployment capabilities to other allies in support of contingency missions outside Europe.
NSPA also asked to procure six LAIRCM system replacements, 14 Guardian laser transmitter assemblies, spares, flight test, aircraft installation, training, certification and support equipment to update the LAIRCM platform onboard three C-17s through a separate contract valued at $33.5 million.
Northrop Grumman (NYSE: NOC) will serve as the principal contractor for the second FMS deal that aims to build up self-protection capabilities of C-17s as part of the NATO Airlift Management program.