http://www.reuters.com/article/idCNN1421151320100514?rpc=44
This is the Reuters article that was released today confirming the Navy's decision to buy 124 more Super Hornets in 4-yr contract valued at $5.3bn. Surprisingly, it's for 66 E/F models & 58 G's - bringing total procurement of Growlers to 114. Apparently, there is pressure & interest to increase the buy beyond these numbers and beyond 2015. FWIW.
Multi-year Procurement (MYP) is a good thing as Martha likes to say! I think I've said it before, but it took years for service to convince Congress to allow MYP. It commits Congress to support the buy beyond the Budget year approved annually, which gives them less wiggle room in a changing defense environment, which is part of annual haggling in Congress and influences reelection.
Of course, it's great for OEM and major suppliers as they can order components in larger quantities thereby reaping potential savings (in fact, the most controversial aspect in approving them is allowing long-lead purchases prior to year aircraft is technically bought...ie FY10 may well include long-lead purchases radars and engines that take longer to assemble/produce).
Here's announcement straight from OSD:
DOD Certifies F/A-18 Multi-year Procurement
Today, the undersecretary of Defense for Acquisition, Technology and Logistics certified to Congress that the proposed F/A-18 multiyear procurement met statutory requirements, including substantial savings, for 124 F/A-18E/F and EA-18G aircraft. The proposed agreement will run for four years, from fiscal 2010 through 2013.
Now that the Department of Defense has certified the multiyear procurement request, the Department of the Navy will continue to work with Congress to gain necessary legislative authorities required before the Navy may enter into a multiyear contract.
With this multiyear procurement, the Navy Department intends to acquire the remaining program of record for the 515 F/A-18E/F Super Hornets and 114 EA-18G Growlers.
The Navy's fiscal 2011 budget request, sent to Congress Feb. 1, includes $1.9 billion to buy 22 Super Hornets and $1.1 billion for 12 Growlers. In fiscal 2012, the Navy plans to buy 24 more Growlers and one Super Hornet, with 25 more Super Hornets in fiscal 2013.
The Department of the Navy is committed to reducing acquisition costs in delivering capability to the warfighter.