Apache Contract

The Army has awarded Boeing a $247 million contract to begin low-rate initial production for the AH-64D Apache Block III helicopter, the company announced today. The contract, signed by the Pentagon on Oct. 22, covers production of eight Apache Block III helicopters in the Lot 1 configuration, according to a Boeing statement. Further:

An Acquisition Decision Memorandum signed by the Department of Defense on Oct. 7 authorized the program to enter the LRIP phase to produce 51 aircraft. The first LRIP delivery is scheduled for October 2011.

The Apache Block III helicopter enhances the capabilities of the combat-proven AH-64D Apache by delivering superior flight performance and dramatically increased networked communications capabilities.

"The road map for the Apache Block III program has been clearly defined and the U.S. Army and Boeing are successfully working together to provide these advanced attack helicopters to soldiers in the field," said Lt. Col. Dan Bailey, Apache Block III product manager for the Army.

"Working together throughout the Apache Block III program's system development and demonstration phase since 2006, the Army, Boeing and our industry teammates have achieved our objectives on cost and on schedule," said Scott Rudy, Apache Block III program manager for Boeing. "I'm confident that the team will continue to effectively apply its collective expertise as the program moves into the production phase."

The current Army acquisition objective is for 690 AH-64D Apache Block III aircraft. The helicopters will be assembled, flight tested and delivered from the Boeing Global Strike facility in Mesa.

Inside the Army reported on Oct. 4 that the ADM comes on the heels of a Sept. 27 milestone C decision for the Apache Block III programs, clearing them to enter into low-rate initial production. In addition, according to an Oct. 18 story:

Contracts for LRIP of the Apache Block III remanufacture program were anticipated in the weeks following milestone C approval. Contractors for the program include Boeing for the helicopter and base platform, and a joint venture between Northrop Grumman and Lockheed Martin called Longbow Ltd. for sensor systems.

The "anticipated first LRIP contract award with Boeing is being planned for [no later than] 15 Oct. 2010 based on congressional notification post-ADM," Bailey wrote to ITA. "The LRIP contract award for [Longbow Ltd.] is anticipated in December 2010."

Though Bailey did not discuss contract specifics, he did say it is expected to encompass the LRIP program, which is slated to cover 51 remanufactured aircraft.

The Apache Block III new-build aircraft will not be covered by these near-term contracts, however, because the Army does not plan to procure the first of them until fiscal year 2013. According to Bailey, a follow-on contract action will occur after a full-rate production decision in FY-12.