Boeing (NYSE: BA) has won a potential 16-year, $9.2B contract to build up to 475 T-X trainer aircraft and 120 ground-based training platforms for the U.S. Air Force.
“Today’s announcement is the culmination of years of unwavering focus by the Boeing and Saab team,” Leanne Caret, president and CEO of Boeing’s defense, space and security business, said in a statement published Thursday.
The contract win “is a direct result of our joint investment in developing a system centered on the unique requirements of the U.S. Air Force,” added Caret, a two-time Wash100 recipient.
The service said Thursday it plans to procure 351 trainer jets, 46 simulators and related ground equipment under the indefinite-delivery/indefinite-quantity contract.
The contract includes a potential $813M initial delivery order for Boeing to engineer, manufacture and develop the first five T-X aircraft and seven simulators.
The Defense Department said work will occur in St. Louis through 2034 under the IDIQ contract.
The Air Force Life Cycle Management Center awarded the contract through a competitive acquisition process and will obligate $33.6M in research, development, test and evaluation funds for fiscal 2018 at the time of award.
The Chicago-based defense contractor said at least 90 percent of production work will be carried out in the U.S. that will support over 17K jobs across 34 states.
The Air Force wants the first aircraft and simulators to be delivered to Joint Base San Antonio-Randolph in Texas by 2023 and expects the T-X program to reach initial operational capability by 2024 and full operational capability a decade later.
The recent development came days after Boeing won a potential $2.4B contract to replace the Air Force’s fleet of UH-1N Huey helicopters and nearly a month after the firm secured a potential $805M contract to build four MQ-25 Stingray carrier-based aerial refueling drones for the U.S. Navy.