DoD awards Boeing $12B Air Force C-17 contract

Tuesday - 10/4/2011, 7:23am EDT


Boeing has received a $12 billion dollar contract to keep the Defense Department's C-17 Globemaster transport planes flying.

The contract award comes from the Aerospace Sustainment Directorate at Robbins Air Force Base, Ga. Under the terms of the contract, Boeing will provide program management, logistics, maintenance and engine work.

The U.K, Canada and several other countries that also use C-17s will have access to the contract as well. The Air Force uses C-17s to move both troops and equipment to battle zones.

The planes, which are also built by Boeing, can perform medical evacuations and air drops. They first entered service in 1995 after years of cost overruns and production problems. The Air Force is taking delivery of 13 new C-17s this year.

This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.