The US Naval Air Systems Command (NAVAIR) has awarded a contract to AAR to deliver two Boeing 737-700 Increased Gross Weight (IGW) series commercial aircraft and related support equipment to the US Marine Corps (USMC).

The contract has a performance period of up to two years and is valued at $118.6m.

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The scope of the contract includes the acquisition, modification, acceptance and delivery of the aircraft to meet the USMC’s C-9B replacement medium-lift requirements.

Once the two modified aircraft are delivered, they will be designated as C-40A aircraft.

AAR president and CEO John Holmes said: “We are honoured to be selected by NAVAIR to manage the procurement, upgrade modification and delivery of these aircraft.

“This integrated solution delivers an outstanding product focused on cost efficiency that directly aligns with the secretary of the navy’s recently announced initiative to achieve greater output and faster turnaround times for their dollars spent.

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“AAR is excited to promote this innovative partnership to all areas of government to highlight the benefits of utilising commercial aftermarket solutions to meet military requirements.”

The USMC will use the C-40A for cargo/passenger, navigation, communication, safety and military mission system capabilities.

AAR Government Solutions senior vice-president Nick Gross said: “Our engineered approach seamlessly delivers a comprehensive solution from across AAR’s businesses that combines best practices from our industry-leading repair, engineering services and supply chain solutions.”

The aircraft will be certified three aircraft configurations, all-passenger, all-cargo and a passenger-cargo.

AAR will perform the work in the US states of Illinois, Indiana, Oklahoma, and Florida.

Work is anticipated to be completed by September 2021.