CPI Aero Announces $65.7 Million Air Force Contract for T-38 Aircraft Modification Kits
July 29 2019 - 06:00AM
CPI Aerostructures, Inc. (CPI Aero®) (NYSE American: CVU) today
announced that it has been awarded a $65.7 million
indefinite-delivery/indefinite-quantity (IDIQ) contract from the
United States Air Force to provide structural modification kits,
program management, logistics, and other sustainment services in
support of Phase 3 of the T-38C Pacer Classic III Fuselage
Structural Modification Kit Integration program (“PC III”) and the
Talon Repair Inspection and Maintenance (“TRIM”) program. The
company also received its first delivery order under the contract
valued at $3.4 million for which work will commence
immediately.
For more than 50 years, the Northrop T-38 has
been the principal supersonic jet trainer used by the US Air Force.
PC III and TRIM are expected to increase the structural service
life of the T-38 beyond 2030. PC III is a three-phase aircraft
modification program that began in 2011 to increase the structural
service life of a certain number of T-38C Talon aircraft.
Requirements for Phase I were fulfilled by Northrop Grumman
Technical Services. In 2015, CPI Aero was awarded Phase 2 of PC III
and is currently supplying kits and services to the USAF under that
contract through 2021. Under the new contract announced today, CPI
will support the final phase of PC III as well as TRIM. The TRIM
program is a separate USAF structural modification effort that will
extend the structural service life of T-38A and T-38 model types,
as well as, T-38C models that were not modified during PC III.
Douglas McCrosson, President and CEO of CPI
Aero, stated, “We are honored to have been chosen by the U.S. Air
Force to continue our work on PC III and begin work on TRIM , two
programs that are essential to the critical mission of training our
future military aviators. This contract recognizes our excellent
past performance as a prime contractor to the USAF and our long
history with the T-38 platform that dates back to 2001. It is a
testament to our reputation as an exceptional supply chain partner
and leverages the investments we have made in developing world
class engineering, supply chain management and program management
capabilities.”
For the PCIII Phase III requirement, the period
of performance is anticipated as a three-year ordering period, with
an additional one year for delivery after an order is placed. For
the TRIM requirement, the period of performance is anticipated as a
10-year ordering period, with an additional one year for delivery
after an order is placed.
About CPI AeroCPI Aero is a
U.S. manufacturer of structural assemblies for fixed wing aircraft,
helicopters and airborne Intelligence Surveillance and
Reconnaissance and Electronic Warfare pod systems in both the
commercial aerospace and national security markets. Within the
global aerostructure supply chain, CPI Aero is either a Tier 1
supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1
manufacturers. CPI also is a prime contractor to the U.S.
Department of Defense, primarily the Air Force. In conjunction with
its assembly operations, CPI Aero provides engineering, program
management, supply chain management, and MRO services. CPI Aero is
included in the Russell Microcap® Index.
The above statements include forward looking
statements that involve risks and uncertainties, which are
described from time to time in CPI Aero's SEC reports, including
CPI Aero's Form 10-K for the year ended December 31, 2018, and Form
10-Q for the three-month period ended March 31, 2019.
CPI Aero® is a registered trademark of CPI
Aerostructures, Inc. For more information, visit www.cpiaero.com,
and follow us on Twitter @CPIAERO.
Contact: Vincent Palazzolo Chief Financial
Officer CPI Aero (631) 586-5200 www.cpiaero.com |
Investor Relations Counsel: LHA Investor
RelationsSanjay M. Hurry / Jody Burfening (212)
838-3777cpiaero@lhai.com www.lhai.com |
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