The U.S. Department of War has granted Boeing Co. (NYSE:BA) a contract modification valued at $854,672,911 for the production and delivery of four P-8A Lot 13 aircraft destined for Foreign Military Sale customers.
The modification expands a firm-fixed-price, cost-plus-fixed-fee agreement to include multiple elements beyond aircraft production. Specifically, the work encompasses non-recurring engineering efforts to address P-8A diminishing manufacturing sources and material shortages, in addition to software integration and hardware updates intended for both the U.S. Navy and the FMS customers covered by the award.
Naval Air Systems Command, located in Patuxent River, Maryland, is listed as the contracting activity for the award. The contract documentation specifies the geographic distribution of the work: Seattle, Washington will account for 98.22% of the effort; Huntington Beach, California will account for 1.1%; and various other locations within the continental United States will comprise the remaining 0.68%.
Completion of the contracted work is expected by September 2030. At the time of award, Foreign Military Sales customer funds totaling $852,589,326 and fiscal 2024 Navy aircraft procurement funds totaling $2,083,585 will be obligated. The notice further states that the Navy procurement funds will expire at the end of the current fiscal year.
The modification was awarded on a non-competitive basis, as noted in the contract announcement.
Implications for production and supply chain
While the award is centered on the production and delivery of four P-8A Lot 13 aircraft, the inclusion of non-recurring engineering work to address diminishing manufacturing sources and material shortages highlights an explicit focus on managing supplier and parts availability challenges within the program. The contract's software integration and hardware update components indicate ongoing sustainment and capability-improvement tasks alongside physical aircraft production.
Funding and schedule considerations
The obligation of $852,589,326 in FMS customer funds and $2,083,585 in fiscal 2024 Navy aircraft procurement funds clarifies the immediate financial posture of the award. Stakeholders should note the expiration clause attached to the Navy funds, which will lapse at the end of the current fiscal year. The program timeline points to an expected completion in September 2030, establishing a multi-year delivery and engineering window for the work laid out in the modification.
All figures, contract types, locations and timelines are taken from the contract announcement as provided.