We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing (BA) Wins $127M Air Force Contract for PAR Program
Read MoreHide Full Article
The Boeing Co. (BA - Free Report) has won a modification contract, worth $127.3 million, from the U.S. Air Force to continue providing sustainment services for the Presidential Aircraft Recapitalization (“PAR”) program phase 2 pre-milestone B. Contracting activity is the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Details of the Contract
Per the contract, Boeing will perform risk reduction activities to deal with PAR sustainment requirements and costs other than those awarded initially on Jan 29, 2016. Focus will be primarily on system specification, environmental control system, interior of the aircraft, electrical and power system, and sustainment and maintenance approach.
The work will facilitate the classification of detailed requirements and design trade-offs that are essential to support informed decisions to pilot a lower-risk engineering and manufacturing development program and reduce life-cycle costs. The latest modification is thus a step toward a deliberate process to control program risk and life-cycle costs.
Work is scheduled to be complete by Jan 31, 2018 and will be executed in Seattle, WA and Everett, WA. The contract will use fiscal 2015 and 2016 research, development, test and evaluation funds.
Further modifications are expected to be made to the contract going forward, to include the purchase of the commercial 747-8 aircraft, in addition to designing, modifying and testing them to meet the standards for the presidential mission.
Once the results of the risk reduction activities have been identified, the Air Force will offer the majority of the program on a separate contract.
The PAR Program
On Jan 28, 2015, Secretary of the U.S. Air Force, Deborah Lee James, in coordination with Frank Kendall, Undersecretary of Defense for Acquisition, Technology and Logistics, revealed that Boeing’s 747-8 has been selected as the next presidential aircraft, commonly known as Air Force One. It was approved on Sept 4, 2015.
The PAR program will replace the existing Air Force One, VC-25A, by 2024 through an extremely customized acquisition program.
Boeing currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the aerospace and defense industry include Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics Corp. (GD - Free Report) , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Boeing (BA) Wins $127M Air Force Contract for PAR Program
The Boeing Co. (BA - Free Report) has won a modification contract, worth $127.3 million, from the U.S. Air Force to continue providing sustainment services for the Presidential Aircraft Recapitalization (“PAR”) program phase 2 pre-milestone B. Contracting activity is the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Details of the Contract
Per the contract, Boeing will perform risk reduction activities to deal with PAR sustainment requirements and costs other than those awarded initially on Jan 29, 2016. Focus will be primarily on system specification, environmental control system, interior of the aircraft, electrical and power system, and sustainment and maintenance approach.
The work will facilitate the classification of detailed requirements and design trade-offs that are essential to support informed decisions to pilot a lower-risk engineering and manufacturing development program and reduce life-cycle costs. The latest modification is thus a step toward a deliberate process to control program risk and life-cycle costs.
Work is scheduled to be complete by Jan 31, 2018 and will be executed in Seattle, WA and Everett, WA. The contract will use fiscal 2015 and 2016 research, development, test and evaluation funds.
BOEING CO Price
BOEING CO Price | BOEING CO Quote
Future Plans
Further modifications are expected to be made to the contract going forward, to include the purchase of the commercial 747-8 aircraft, in addition to designing, modifying and testing them to meet the standards for the presidential mission.
Once the results of the risk reduction activities have been identified, the Air Force will offer the majority of the program on a separate contract.
The PAR Program
On Jan 28, 2015, Secretary of the U.S. Air Force, Deborah Lee James, in coordination with Frank Kendall, Undersecretary of Defense for Acquisition, Technology and Logistics, revealed that Boeing’s 747-8 has been selected as the next presidential aircraft, commonly known as Air Force One. It was approved on Sept 4, 2015.
The PAR program will replace the existing Air Force One, VC-25A, by 2024 through an extremely customized acquisition program.
Boeing currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the aerospace and defense industry include Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics Corp. (GD - Free Report) , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>