StandardAero’s San Antonio facility awarded $380 million DoD contract
StandardAero’s San Antonio facility has netted a five-year, $380 million contract to overhaul engines used in Air Force transport planes.
The facility at Port San Antonio was awarded the contract on Dec. 21, according to the Department of Defense. StandardAero will be responsible for maintenance and overhaul work on T56 series 3.0 engines, which are used in Lockheed Martin C-130H transport airplanes and other military aircraft. The facility will also do work to upgrade the engines to the series 3.5 engines, said Vice President of Business Development Dan Gonzales.
The contract has the option to be extended for three one-year terms. Gonzales did not know how much those additional contracts are valued at.
The StandardAero facility currently has more than 300 employees working on the T56 engine, while another 40 work on the F-110 jet engine.
Gonzales said a previous one-year contract between the Air Force and StandardAero for T56 engine maintenance expired this month. Before that contract, StandardAero had done the work as a subcontractor for Lockheed Martin, which shares the 576,000 square foot U-shaped building at Port San Antonio with StandardAero. Lockheed Martin is preparing to shutter its facility by mid-2018, and StandardAero took over the lease in June.
StandardAero’s San Antonio General Manager Mark Bungiorno said the long-term contract will allow the company to find cost savings for the Air Force.
“An eight-year contract allows you to work with the customer to look for longer term cost saving initiatives that you simply don’t have time to work on during a one year or two year contract,” Gonzales said.
The contract is at least the second worth more than $100 million awarded to a San Antonio aerospace facility in the last week. San Antonio-based M7 Aerospace, a subsidiary of Elbit Systems of America based at San Antonio International Airport, was awarded a maintenance contract that starts with a one-year term worth $25 million that can be extended another five years for a total of $176 million.
Rye Druzin is a San Antonio Express-News energy reporter. Read more of his stories here. | firstname.lastname@example.org | @druz_journo