Boeing Awarded $895 Million to Upgrade C-17s

On Friday, the U.S. Department of Defense announced it has awarded Boeing (NYSE: BA  ) an $895 million "cost-plus-incentive-fee, cost-plus-fixed-fee, firm-fixed-price, fixed-price incentive-fee, and cost-reimbursement" contract to overhaul and upgrade the Air Force's C-17 Globemaster III transport fleet.

As of February 2011  the U.S. Air Force had 213 C-17s in service, with an ultimate goal of building the fleet to 224 planes. As such, the approximate value of the new contract, which runs through the end of 2022, is $4 million per plane. The flyaway cost of a brand-new C-17, according to fiscal 2012 budget estimates: $201 million.

Shares of Boeing dropped ahead of the DoD announcement, falling 1.5% to close at $74.69.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2172480, ~/Articles/ArticleHandler.aspx, 11/28/2014 10:10:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,863.94 36.19 0.20%
S&P 500 2,071.47 -1.36 -0.07%
NASD 4,795.18 7.86 0.16%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/28/2014 9:41 AM
BA $135.07 Up +0.29 +0.22%
The Boeing Company CAPS Rating: ****

Advertisement