Washington D.C. - Air Force officials announced today the multi-year procurement contract Oct. 25 for the C-130J Hercules has been converted from a Federal Acquisition Regulation Part 12 to a FAR Part 15 contract. 

In order to comply with the fiscal 2006 National Defense Authorization Act, the C-130J contract has been converted from the existing commercial item procurement to a traditional military procurement to purchase aircraft in fiscal year 06. The conversion involved repricing 39 aircraft, resulting in institutional net savings of $168 million. 

"The Air Force, with the Congressional leadership and support of Senator John McCain and in conjunction with Lockheed Martin, has made this a better contract vehicle that provides the government the cost insight it needs to procure aircraft for the Air Force and Marine Corps," said Sue Payton, assistant secretary of the Air Force for acquisition. "The Air Force acquisition community looks forward to working closely with Congress in future acquisition reform initiatives." 

Lockheed Martin is the contractor for the C-130J a key component of the intra-theater airlift modernization effort. It brings a variety of increased capabilities to joint war fighter and humanitarian operations.