21-Mar-2023 Source: US Army
Representatives from the Army and Boeing signed a Multi-Year II (MY2) multibillion-dollar contract to acquire 184 new and remanufactured AH-64E Apache helicopters at the Boeing production facility in Mesa, Ariz., on March 17, 2023.
Multi-year procurement contracts are special mechanisms designed to reduce costs for a limited number of programs that reach full-rate production. Cost savings come from buying goods or services in bulk over several years.
The MY2 contract allows the Army to meet current and future capability needs through upgrades, remanufacturing, replacement, and technology insertions. This contract ensures a substantial savings on 115 Army base aircraft with an additional 15 Army aircraft to be procured as options, saving the U.S. government millions over the term of the contract. The additional 54 aircraft will be delivered to partner nations as part of Foreign Military Sales.
The total contract potential is over $3.78B. Production deliveries will be through December 2027. The contract facilitates industrial stability and will save $213 million compared to annual contracts.
The efficiencies of the multiyear contract result in direct savings to the Army and to taxpayers of more than 10 percent of the contract, and potentially more of the Army procures additional AH-64Es under the contract option. Much of the savings is attributed to industry having stable and known requirements over the five-year period versus the instability of individual year contract planning.
“This multiyear contract is critical for the warfighter and the entire Apache team,” Col. Jay Maher, Apache project manager, said. “It demonstrates the Army’s commitment to continue putting unmatched capability into the hands of our nation’s finest, while providing stability and predictability for the outstanding citizens and companies that pour their talent into producing the best attack helicopter in the world.”
The AH-64E provides a wide range of enhancements including Composite Main Rotor Blades, Manned Unmanned Teaming, which allows communication with, and control of Unmanned Aircraft Systems, improved targeting, and night vision systems along with greater speed and range.