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Home stretch: Final 2008 Option for KC-10/KDC-10 Support

Related Stories: Americas - USA, Boeing, Contracts - Awards, Europe - Other, Northrop-Grumman, Partnerships & Consortia, RFPs, Support & Maintenance

KC-10
USAF KC-10
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The KC-10 Extender is a McDonnell Douglas DC-10 Series 30CF variant converted to the aerial tanker role. It beat Boeing’s Model 747 aerial tanker variant to win Advanced Tanker Cargo Aircraft competition in 1977, and 60 of them were delivered to the USAF between March 1981 – November 1988. The KC-10s serve as the USAF’s current “heavy tanker” option, with much greater fuel and cargo capacity than the Eisenhower-era KC-135/707s. The KC-10s also have an unusual ability within the US tanker fleet – they can take on fuel from other aerial tankers to fill themselves up, then send the others back to base. The USA’s new KC-X tankers will also have this ability, but the older KC-135s do not, except for a handful of KC-135R/T models.

Every fleet requires maintenance, of course, and this latest contract is the last round of the current 10-year contract. Meanwhile, a big competition is underway for the next 10-year order…

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Dutch KDC-10

In the wake of the McDonnell-Douglas/Boeing merger in 1997, KC-10/KDC-10 support services are currently provided by Boeing as part of a 10-year contractor logistics support contract that provides depot-level maintenance and modifications, supply chain management for spares et. al., and other critical support tasks. DID has covered the 2006 contract option ($196.2 million), and 2007 option ($306.5 million). Now Boeing Aerospace Operations, Inc. of San Antonio, TX is receiving the last fixed-price contract option exercised for $307.5 million, exercising option IX for the KC-10 and option J for the KDC-10, covering work from Feb 1/08 – Jan 31/09. The Boeing-led KC-10 CLS team includes more than 450 suppliers and partners, many of whom have supported the KC-10 Extender since it entered service. At this time no funds have been committed; the contract simply provides an umbrella framework for delivery orders. In the last 9 years of the CLS contract, however, Boeing’s team have provided depot-level maintenance for the fleet more than 700 times. The 727 ACSG/PKA at Tinker Air Force Base, OK issued the contract (F34601-98-C-0125/P00258).

Boeing’s release notes that this award allows Boeing KC-10 support to continue uninterrupted until a new competitive contract is awarded this summer. Boeing submitted its bid in December 2007, as did competitor Northrop Grumman. The next 10 year contract could be worth up to $3.8 billion, and each side brings credentials to the award. These 2 firms are competitors for the $30-40 billion KC-X award, of course, but each also has interesting assets on the maintenance side. Boeing can point to the C-17’s performance-based Globemaster Sustainment Partnership, while Northrop Grumman can point to success with an even more advanced maintenance program for the USAF’s B-2 stealth bombers.

See also Boeing’s release.