US Air Force Awards $21 Billion Contract to 25 Companies

Photo of Paul Ausick
By Paul Ausick Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

T-38 training jet
U.S. Air Force
In a contract announcement on Tuesday, the U.S. Department of Defense and the U.S. Air Force announced a multiple-award contract with a ceiling of $20.9 billion for Air Force Training Systems. The contract is an indefinite-delivery/indefinite-quantity contract for the Training Systems Acquisition (TSA) III program and includes 25 companies ranging from top defense contractors to small businesses.

The contractors will provide for the analysis, design, development, production, installation, integration, test and sustainment for Air Force training systems encompassing complex aircrew, maintenance and system-specific training systems in support of warfighter training at operating locations worldwide. TSA III has a 10-year ordering period through August 2025.

Among the contractors included are Boeing Co. (NYSE: BA), Computer Sciences Corp. (NYSE: CSC), L-3 Communications Corp. (NYSE: LLL), Lockheed Martin Corp. (NYSE: LMT), Northrop Grumman Corp. (NYSE: NOC) and Raytheon Co. (NYSE: RTN).

Each of the contractors will receive $1,000 at the time of the award for the 2015 fiscal year. Additional funding will be assigned on individual task orders.

This contract does not include a program to upgrade the Air Force’s training jet, the venerable T-38. Upgrading the fleet of training planes did not make the Air Force’s list of its top three projects. Those are the F-35A fighter plane from Lockheed Martin, the KC-46A tanker from Boeing and the Long-Range Strike Bomber (the B-3). A contract for 80 to 100 B-3s costing around $550 million each is expected soon. There are two competing bids for the B-3, a team led by Northrop Grumman and another led by Boeing and including Lockheed Martin.

ALSO READ: Another Delay Hits Boeing KC-46A Tanker

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618