Boeing [BA] and the Army have made progress toward a multi-year contract for AH-64E model Apaches with a second quarter 2017 contract a possibility.
Army Col. Jeff Hager, program manager for Apache, told reporters Monday Pentagon Director of Defense Pricing Shay Assad approved the Army proceeding with multi-year negotiations, which would be worth 275 “Echo” model aircraft for the Army, according to prime contractor Boeing. Hager said the goal is for deliveries between 2017 and 2021.
Boeing Vice President of Attack Helicopters Kim Smith said Monday the company received its opening offer from the Army on Friday, which she said was slightly ahead of schedule. Smith said she looks forward to an informal handshake agreement for the multi-year by the end of this year.
Former Army Secretary John McHugh last summer gave the go-ahead to continue pursuing the multiyear contract. Since then, Boeing submitted its proposal to the service and the director of Cost Assessment and Program Evaluation (CAPE), Jamie Morin, was to analyze it. The Army hoped Defense Secretary Ashton Carter would approve the deal in March (Defense Daily; Oct. 13, 2015). It was not known at press time whether he has approved the deal or if his approval was still necessary for the multi-year to proceed. A request for comment to the Army was not returned by press time.
Hager’s and Smith’s remarks came at the Association of the United States Army’s (AUSA) annual conference in Washington.