AAR Government Services Inc. has won a contract valued at as much as $118 million for the acquisition, modification, acceptance and delivery of two Boeing 737-700 Increased Gross Weight (IGW) series commercial aircraft that will meet USMC C-9B replacement medium-lift requirements and will be designated C-40A.

The U.S. Department of Defense said Friday that this statement of work (SOW) will procure and modify a 737-700 IGW series airframe and engines that will meet cargo/passenger, communication, navigation, safety and military mission system capabilities.

The military mission systems consist of requirements for military navigation and communication system. The aircraft shall be certified in accordance with 14 Code of Federal Regulations (CFR) Part 25 (airworthiness standards) for an all-passenger configuration that can carry 121 passengers and an all-cargo configuration of eight 463L (HCU-6/E) cargo pallets.

A passenger-cargo configuration (combi-configuration) shall be certified to meet 14 CFR Part 25 or military airworthiness standards that will consist of seating and cargo pallets that will provide the USMC the added mission flexibility to configure the aircraft in a cargo-passenger configuration.

Naval Aviation (NAVAIR) will be responsible for the airworthiness related to the combination configuration unless the configuration falls within an existing Federal Aviation Administration (FAA) certification.

The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.