2010.

In 1996, DoD ordered another 80 aircraft for a total of 120.[33] In 1997 McDonnell Douglas merged with its former competitor, Boeing. In April 1999, Boeing proposed to cut the price of the C-17 if the Air Force bought 60 more,[34] and in August 2002, the order was increased to 180 aircraft.[35] In 2007, 190 C-17s were on order for the USAF.[36] On 6 February 2009, Boeing was awarded a $2.95 billion contract for 15 additional aircraft, increasing the total USAF C-17 fleet to 205 and extending production from August 2009 to August 2010.[37] On 6 April 2009, U.S. Secretary of Defense Robert Gates stated that there would be no more C-17s ordered beyond the 205 planned.[38] However, on 12 June 2009, the House Armed Services Air andLand Forces Subcommittee added a further 17 C-17s.[39]

In 2010, Boeing transitioned to a production rate of 10 C-17s per year from a high of 16 per year, this was due to dwindling orders and to extend the life of the production line while additional international orders were sought. The workforce was reduced by approximately 1,100 through 2012, and a second shift at the Long Beach assembly plant was also eliminated.[40] By April 2011, 230 production C-17s had been delivered, including 210 to the USAF.[41] The C-17 prototype "T-1" was retired in 2012 after being used by the USAF for testing and development.[42] In January 2010, the USAF announced the end of Boeing's performance-based logistics contracts to maintain the aircraft.[43] On 19 June 2012, the USAF ordered its 224th