Naval Air Systems Command, Patuxent River, MD - July 2, 2002. The Naval Air Systems Command announced today it signed a multi-year contract with the General Electric Aircraft Engines Company for the F414 Engine. The F414 engine powers the U.S. Navy F/A-18E/F Super Hornet Strike Fighter. The contract, valued at $1.9 billion, includes a total of 480 engines over five years. By signing a multi-year contract, the Navy will save over $50 million, and deliver quantum leap in tactical ability to the U.S. Naval Fleet.

Under the terms of the contract, the initial award includes install engines and devices, FY02 spare engines, devices and modules, and engineering support. The contract provides the flexibility to adjust the engine and device quantities between 420 and 625 units to meet the needs of the U.S. Navy. The contract also includes options to procure additional spare engines, devices and modules on an annual basis. These options could be valued at an additional $161 million dollars if fully exercised. Deliveries will take place from March 2003 through February 2008.

A multiyear procurement has many benefits for the Government and the contractor. Specifically it provides the most economical method to procure the engine by yielding substantial savings over traditional, single-year procurement scenarios. In a multi-year environment, savings are captured by eliminating annual, nonrecurring start up costs, including proposal preparation and negotiation, subcontract negotiation, and tooling set-up. A multi-year procurement also allows the contractor to better plan the production flow and facility utilization, which reduces the recurring production and sustaining engineering costs.

The F414-GE-400 engine has been derived from the highly successful F404 engine and is rated at 22,000 pounds (98 kN) thrust, with a nine-to-one thrust-to-weight ratio. The F414 engines are produced at the GEAE plant in Lynn, Massachusetts.

For additional information contact Denise Deon Wilson at 301-481-6263 or visit our web site at http://pma265.navair.navy.mil.

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