Army asks for multiyear Apache contract

By Ethan Sterenfeld / June 22, 2021 at 1:49 PM

The Army is asking Congress for permission to enter into a multiyear contract to purchase the AH-64E Apache helicopter, a move the service claims could reduce procurement costs by 10%.

A four-year contract that begins in fiscal year 2022, with an option to extend for a fifth year, would "facilitate industrial stability" and save $213 million compared to annual contracts, according to a legislative proposal the Defense Department submitted to Congress June 17.

The total cost for the helicopters through FY-25 would be $2.1 billion with the annual contracts, compared to $1.9 billion with the multiyear contract. Without the multiyear contract, budget pressures could force the Army to buy fewer Apaches, according to the legislative proposal.

Language in the legislative proposal would require "any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2022 is subject to the availability of appropriations for that purpose in such a later fiscal year."

In a separate package sent earlier this month, the service requested congressional permission to award a similar multiyear contract to purchase UH/HH-60M Black Hawk helicopters.