The Insider

Navy, Air Force seek $4.5 billion C-130J multiyear procurement

By Justin Katz  
March 5, 2018 at 4:12 PM

The Navy and Air Force are seeking congressional approval for a $4.5 billion C-130J multiyear procurement contract for fiscal years 2019 to 2023, according to budget justification documents.

The Navy KC-130J aircraft provides tactical in-flight refueling and assault support transport. The Air Force variants -- HC/MC/AC-130J -- are designed for combat search and rescue, special operations, and close air support and armed reconnaissance.

"This multiyear contract will provide the U.S. Government maximum savings in both price and delivery schedule," according to Air Force budget justification documents. "Specifically, savings for the [FY-19] through [FY-23] attributable to this MYP strategy is estimated at $581.9 million [then-year dollars], for a total of 11.4 percent."

Further, the advanced procurement funding will enable prime contractor Lockheed Martin "to authorize and place on order materials, equipment suppliers and subcontractors with sufficient lead time to support the planned delivery schedule within the context of the multiyear funding, prices, and cancellation ceilings," the documents said.

The Navy would seek 14 additional KC-130Js -- totaling 23 aircraft -- compared to FY-18 projections throughout the future years defense program. Meanwhile the Air Force would procure 29 aircraft total through those same years.

The Navy's increases represent "an effort to better align [Marine Corps] Program of Record (POR) completion with the [Air Force] POR completion resulting in lower overall program cost," according to Navy budget documents.

The services are nearing the end of their previous multiyear contract spanning from FY-14 to FY-18.