Acquisition: Procurement Procedures Used for C-17 Globemaster III Sustainment Partnership Total System Support

The C-17 is a jet-powered strategic airlifter with a cabin offering large volume capacity and a rear-loading assembly to accommodate wheeled or tracked vehicles. The aircraft was designed to airlift and airdrop loads, including armored vehicles, directly into a combat zone. The C-17 Globemaster III was developed by McDonnell Douglas Corporation, a wholly owned subsidiary of The Boeing Company (Boeing). On October 1, 2003, the Air Force awarded McDonnell Douglas a letter contract (contract no. FA8614-04-C-2004) to provide sustainment for the C-17 through December 31, 2003, for an amount not to exceed $259 million. The long-term sustainment contract was definitized on July 22, 2004, for $871 million for FY 2004, and a potential value of almost $5 billion (base year and four priced annual options). The contract, including the base year, four priced annual options, and three unpriced options, runs from FY 2004 through FY 2011. The Aeronautical Systems Center at Wright Patterson Air Force Base is the contracting activity.