Embraer and Sierra Nevada Win $950 Million Afghan Air Force Contract

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Click Here Now

On Wednesday, the Department of Defense announced it has awarded privately held Embraer (NYSE: ERJ ) partner Sierra Nevada a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the provision of advanced aircrew trainers and light air support aircraft "to establish air combat capability for allied countries under the Building Partnership Capacity program."

The first order under this contract, for $427.5 million, calls for Sierra Nevada to supply 20 Light Air Support Aircraft, with accompanying training devices, spare parts, and related equipment. The size of the order appears to be scalable, however, as the DOD announcement specifies that the order value can be increased as high as $950 million. Performance on the first order of this contract is due by April 2015, but the full contract runs through Feb. 26, 2019.

The planes in question, modified versions of the Embraer Super Tucano fighter, were originally selected by the Air Force to begin outfitting the new Afghan Air Force in 2011. A protest at that time by Goldman Sachs (NYSE: GS ) subsidiary Hawker Beechcraft, however, scuttled the order and forced the Air Force to reset its bidding process. Today's award shows that Sierra Nevada and Embraer have definitively won the bidding war, however.

According to the U.S. Air Force's official website, the planes will begin arriving in Afghanistan this summer, at the rate of two aircraft per month.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

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 icon found on every comment.