The Boeing Co. (BA) announced that it received additional contracts worth $61 million from the U.S. Air Force to produce C-130 Avionics Modernization Program (“AMP”) kits. The new agreements are part of the low-rate initial production (“LRIP”) contract that was awarded in 2010.
The C-130 AMP was initiated to modernize, standardize and reduce total ownership costs for the United States Air Force C-130 fleet, including specialized versions in service with the Air Force Special Operations Command.
Boeing is building two new C-130 AMP Aircrew Training System devices: a Weapon System Trainer and an Avionics Part Task Trainer. The training devices will be developed at CAE USA’s Tampa, Florida, facility and will be delivered to the Arkansas Air National Guard C-130 AMP training center at Little Rock Air Force Base, Arkansas in 2014.
In 2001, Boeing received the initial contract for C-130 AMP and gradually with the development of the program carried out a major upgrade to most Air Force C-130 aircraft. The upgrade included change in the cockpit displays, compliance with current navigation and safety requirements and standardization of avionics across the C-130 fleet.
Prior to this new contract, Boeing was asked, in December 2010, to increase the delivery of AMP kits to 26 from 20 aircraft. Out of the six AMP kits, two will be installed at Warner Robins, Georgia, while the third C-130 will be inducted in late 2011 and the fourth in early 2012.
Chicago-based Boeing Co. currently has a Zacks #3 Rank (short-term Hold rating). We also maintain a long-term Neutral rating on the stock. The company competes with the likes of General Dynamics Corp. (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
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