Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

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

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.

Read/Post Comments (0) | Recommend This Article (2)

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: 2283766, ~/Articles/ArticleHandler.aspx, 3/28/2015 12:02:11 PM

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...