Support 100 years of independent journalism.

  1. Business
  2. Economics
10 July 2012

Defense contracting is deeply weird

A $0.5bn golden goodbye is nice to have for anyone.

By Alex Hern

Business Insider’s Walter Hickey does a weekly round-up of things the American Department of Defence has purchased, and this week’s contains a line item which basically sums up defence spending.

This is what the contract press release says:

The Boeing Co., Long Beach, Calif., is being awarded a $500,000,000 firm-fixed-price and cost-plus-fixed-fee contract for the C-17 transition to post production, which will provide for orderly transfer of C-17 production assets. The location of the performance is Long Beach, Calif. Work is to be completed by July 5, 2022. ASC/WLMK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8614-12-D-2049, Order 0001).

Hickey translates from DoD-ese:

The Department of Defense decided that they’re probably not going to need too many more of Boeing’s C-17 jets. So to make sure that the transition from “making C-17s” to “not making C-17s” goes as smoothly as possible, they awarded Boeing a half-billion dollar contract. The production facility in Long Beach California will likely have to have some changes, and Boeing is likely still responsible for parts, maintenance, and upkeep of the C-17 fleet for a while. Still, that’s a heck of a severance package.

Select and enter your email address Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

This is how military contracting works. You get paid to make something, you get paid to stop making things. You get paid if you deliver, you get paid if you don’t deliver. You get paid while your things are used, and then you get paid when they stop being used. Generally speaking, you’re going to get paid.

Content from our partners
What are the green skills of the future?
A global hub for content producers, gaming and entertainment companies in Abu Dhabi
Insurance: finding sustainable growth in stormy markets