Boeing Awarded $17.5 billion Cap Contract from US Army

28 January 2009 (Last Updated January 28th, 2009 18:30)

Boeing announced today that it had received a lucrative contract with the US Army Programme Executive Office for simulation, training and instrumentation's omnibus contract II (STOC II). The contract is a multiple-award; indefinite delivery / indefinite quantity deal with a $17.5bn cap

Boeing announced today that it had received a lucrative contract with the US Army Programme Executive Office for simulation, training and instrumentation's omnibus contract II (STOC II).

The contract is a multiple-award; indefinite delivery / indefinite quantity deal with a $17.5bn cap over up to ten years.

As awardees, Boeing and wholly owned subsidiary Tapestry Solutions are eligible to bid over the life of the programme on a variety of delivery and task orders, depending on the army's needs.

Training Systems and Services vice president Mark McGraw said that Boeing was uniquely qualified to respond to the quick turnaround time required by ID/IQ contracts.

"This contract allows us to provide a wide array of services for the war fighter, as well as expand further within the training and simulation markets," McGraw said.

Boeing where selected for the project thanks to their high levels of technological capacity and also because of the Streamlined Management and Response Tool, which reduces response time on ID/IQ requests by quickly matching contract requirements to a database of suppliers.

According to McGraw, "Boeing's management organisation is key to keeping costs down while enhancing our performance to plan."

Boeing Integrated Defense Systems training systems and services business unit will manage the STOC II program from St Louis. Tapestry Solutions will manage its portion of the programme from its facility in San Diego, focusing on simulation and exercise support.

Boeing will work in close partnership with the Army Programme Executive Office to provide management and oversight of all delivery and task orders awarded to the company within the STOC II environment

By Daniel Garrun.