Relocating C-130 Avionics Modernization Program To
Aug. 3, 2010 - The
Boeing Company announced it will relocate the C-130 Avionics
Modernization Program (AMP) and B-1 Program from
Both programs are part of the Maintenance, Modifications & Upgrades (MM&U) division of the Global Services & Support (GS&S) business unit of Boeing Defense, Space & Security.
The programs now
employ approximately 800 people in
In 2000, Boeing
was awarded a US$1.4 billion contract to develop an Avionics
Modernization Program kit for the C-130. The program was beset with
delays and cost overruns until project restructuring in 2007. On 2
September 2009, Bloomberg news reported that the planned Avionics
Modernization Program (AMP) upgrade to the older C-130s would be dropped
to provide more funds for the F-35, CV-22 and airborne tanker
However, in June
2010, the Pentagon approved funding for the initial production of the
AMP upgrade kits. Under the terms of this agreement, the USAF has
cleared Boeing to begin low-rate initial production (LRIP) for the C-130
AMP. A total of 198 aircraft are expected to feature the AMP upgrade.
The current cost per aircraft is $14 million although Boeing expects
that this price will drop to US$7 million for the 69th aircraft.
"Making a decision
like this is never easy, but as we reviewed our anticipated operating
costs for the next several years, it became clear that Boeing needs to
take major actions on these programs in order to remain affordable for
our customers," Bass said. "We remain committed to maintaining the
excellent record of performance that our employees deliver for our U.S.
Air Force B-1 and C-130 AMP customers during this transition."
During the move,
some employees will be relocated, while other positions will be posted
and hired locally in
C-130 AMP brings
commonality to the C-130 fleet by offering flexibility in assigning
aircrew, regardless of the model design type, and reducing aircraft
operating costs while addressing obsolescence and providing for future
capability growth. The program recently was approved by the Air Force
for low-rate initial production.
The Boeing B-1
Program is modernizing the B-1 Lancer bomber to further enhance its
conventional munitions capability. Multiple upgrades are being tested
this year to improve the bomber's capabilities.
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