L-3 Communications Wins $321M Contract for C-27J aircraft from US DoD

L-3 Communications Integrated Systems, L.P., Greenville, Texas, is being awarded a $321,770,026 firm-fixed-price contract to purchase 10 C-27J aircraft, 10 option kits, and one lot each production cost and software reports and contractor logistic support cost and software reports for the Commonwealth of Australia by issuing a delivery order. The location of the performance is Greenville, Texas. Work is to be completed May 24, 2012. ASC/WLNJ, Wright-Patterson Air Force Base, Ohio, is the contracting activity (W58RGZ-07-D-0099 0078). (EDITOR’S NOTE: It is high time for the Australian Ministry of Defence to come clear on the true cost of this purchase, as there are too many contradictions in official statements regarding this contract. Announcing the deal on May 10, Defence Minister Stephen Smith said the “acquisition of the 10 C-27J aircraft with associated support equipment will be conducted through a Foreign Military Sales (FMS) arrangement with the United States at a cost of around $1.4 billion.” He noted that this price only covered “initial logistic support, including training for aircrew and maintenance personnel…” and that follow-on support would be covered by “a separate agreement with the C-27J manufacturer, Alenia” obviously at additional cost. The very next day, L-3 Communications announced that it had been selected by Australia to provide C-27Js at “an approximate value of $600 million [which] includes the supply of 10 new C-27J aircraft worth about $300 million, plus contractor logistics support, spares and training.”