The C-17 military transport, being developed for the Air Force by McDonnell Douglas Corporation, Douglas Aircraft Company, is designed to airlift substantial payloads over long ranges without refueling. The Air Force originally planned to buy 210 C-17 aircraft. However, in April 1990, as a result of the Major Aircraft Review, the Secretary of Defense reduced the planned purchase to 120 production aircraft at an estimated cost of $35.8 billion. The aircraft is being developed and produced under a fixed-price incentive contract awarded in 1982. In addition to the test aircraft and two non-flying test airframes, the contract includes two options (lots I and II) for a total of six production aircraft. The ceillng price of the development contract, including both lots of production aircraft, is $6.637 billion. A separate fixed price contract for a third production lot of four aircraft was awarded on July 30,1991, with a target price of $ 1.026 billion and a ceiling price of $1.215 billion. The C-17 program is presently in the low-rate-initial-production phase. The full-rate-production decision is planned for March 1995.