Boeing gets military contract worth up to $9.2 bln

UA SERGEI Khitrovo #03.06.2002 15:42

SERGEI Khitrovo


Friday May 31, 5:45 pm Eastern Time
Reuters Company News

WASHINGTON, May 31 (Reuters) - The Boeing Co.'s (NYSE:BA - News) McDonnell Douglas unit has been awarded a contract that could be worth up to $9.2 billion for weapons-related work on F-15 fighter aircraft, initially for Saudi and Israeli forces, the U.S. Air Force said on Friday.

The open-ended contract, for indefinite deliveries of indefinite quantities, does not include aircraft, sustainment-related spares or programmed depot maintenance, the U.S. Air Force said in a statement.

It said decentralized ordering was authorized for F-15 weapons system requirements over a 15-year period. The initial requirements in support of the F-15 fleet include U.S. sales to the Royal Saudi Air Force and Israeli Air Force.

"The Air Force can issue delivery orders totaling up to the maximum amount" of $9.2 billion, "although actual requirements may necessitate less," the statement said.

But only $9.3 million of the funds has so far been set aside for specific purchases. The work will be completed by May 2017, the Air Force added.

The F-15 Eagle is an all-weather tactical fighter designed to shoot down other aircraft in a dogfight.


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