Less than a week after winning a massive $4.8 billion order from the Department of Defense to build 177 CH-47F Chinook heavy lift helicopters for the Army, Boeing (BA +2.74%) has won another one.
In a news release last night, DoD announced that it has awarded Boeing a firm-fixed-price, multiyear contract worth up to $3.4 billion for the production of remanufactured and new-build Chinooks. To be clear, this new contract is not the anticipated "option" to buy an additional 38 helos discussed in last week's contract. Rather, this is an entirely new order placed "in support of foreign military sales for Turkey and United Arab Emirates."
What's more, this one could be even bigger as the "optioned" version of the contract let out by the U.S. Army last week. According to DoD, the Turkey/UAE contract has options of its own attached, which, if exercised, could increase the total contract value to just under $5 billion, versus a potential value of roughly $4.8 billion on last week's U.S. Army contract.
Boeing is expected to deliver the initial (unspecified) number of contracted Turkey/UAE helicopters by Dec. 31, 2020. If options are exercised, additional helos would probably be delivered farther out.
