The U.S. Air Force announced an impressive $10 billion contract with Lockheed Martin Corporation for a versatile military transport plane.
The contract covers all manufacturing of Lockheed’s C-130J, known as the “Super Hercules,” for the next decade, including sales of the jet to foreign countries, the Department of Defense said in the announcement Friday.
The amount Lockheed receives through the contract depends on how many C-130J’s the DoD orders, but the total can’t exceed $10 billion. The government refers to these kinds of contracts as “indefinite delivery, indefinite quantity,” which means the agency can order as much as they want, up to the contract ceiling. “This is a cumulative ceiling to cover all future delivery orders within scope of this contract,” the announcement says. – READ MORE