Stock Markets June 22, 2026 05:20 PM

Boeing Secures $121.2 Million U.S. Navy Order to Upgrade P-8A Fleet

Work includes nine retrofit A-kits, three kit installations and engineering work to address supply issues; completion slated for May 2029

By Marcus Reed
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Boeing has received a $121,195,041 cost-plus-fixed-fee contract from the U.S. Department of War, awarded by Naval Air Systems Command, to supply retrofit hardware and perform upgrade installations for P-8A maritime patrol aircraft for both the U.S. Navy and the Royal Australian Air Force. The package covers nine A-kits with Increment Three Block Two ECP Six functionality, three installations of A- and B-kits on Navy aircraft, and non-recurring engineering to mitigate diminishing manufacturing sources and material shortages. Work will be carried out at sites in Jacksonville, St. Louis and Mesa, with funding drawn from fiscal 2026 and 2024 procurement accounts and RAAF funds; the contract was not competed and is expected to finish in May 2029.

Boeing Secures $121.2 Million U.S. Navy Order to Upgrade P-8A Fleet
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Key Points

  • Boeing received a $121,195,041 cost-plus-fixed-fee contract to supply nine retrofit A-kits and perform installations and engineering work for P-8A aircraft.
  • Six A-kits are for U.S. Navy P-8As and three are for Royal Australian Air Force P-8As; the order also funds three installations of A- and B-kits on Navy aircraft.
  • Work will be carried out in Jacksonville (80%), St. Louis (11%), and Mesa (9%), with completion expected in May 2029; funding combines fiscal 2026 and 2024 U.S. procurement funds and RAAF funds.

Boeing Co. has been awarded a $121,195,041 contract by the U.S. Department of War for upgrades to the P-8A maritime patrol aircraft, the Naval Air Systems Command announced. The order is structured as a cost-plus-fixed-fee award that covers production and modification work on retrofit kits and related engineering tasks.

The scope specifies procurement of nine retrofit A-kits incorporating Increment Three Block Two Engineering Change Proposal Six capabilities. Of the nine kits, six are allocated to Navy P-8A aircraft while three are intended for Royal Australian Air Force P-8A aircraft. In addition to the kit procurement, the contract provides for three installations of retrofit A-kits and B-kits onto Navy P-8A airframes.

Non-recurring engineering effort is also included in the award. That work is directed at addressing diminishing manufacturing sources and material shortages identified as part of the upgrade program.

Geographically, the performance mix is divided among three locations. Approximately 80% of the work will be performed in Jacksonville, Florida; 11% in St. Louis, Missouri; and 9% in Mesa, Arizona. The planned period of performance runs through May 2029, when the project is expected to be complete.

Funding for the contract will come from multiple appropriations. Fiscal 2026 aircraft procurement funds in the amount of $92,809,039 will be applied, together with $8,272,791 in fiscal 2024 aircraft procurement funds, and $20,113,211 supplied by the Royal Australian Air Force. The notice states that the fiscal 2024 procurement funds will expire at the end of the current fiscal year.

The Naval Air Systems Command, located in Patuxent River, Maryland, is identified as the contracting activity. The announcement further notes that this contract action was not competed.


Context and implications

  • The award covers both supply of retrofit hardware and installation services on U.S. Navy P-8A aircraft, and procurement of kits for RAAF P-8As.
  • Included engineering work targets supply-chain challenges by addressing diminishing manufacturing sources and material shortages.
  • Funding for the effort is a blend of U.S. fiscal 2026 and fiscal 2024 procurement monies and direct RAAF contributions, with one tranche of U.S. funds scheduled to expire at the end of the current fiscal year.

Risks

  • Fiscal 2024 aircraft procurement funds included in the contract will expire at the end of the current fiscal year, potentially affecting obligation timing - this impacts defense procurement and budget planning.
  • The contract specifies non-recurring engineering to address diminishing manufacturing sources and material shortages, indicating supply-chain and parts availability risks that affect aerospace manufacturing and defense contractors.
  • The award was not competed, which may introduce program oversight or schedule risks tied to single-source execution and contract management within defense procurement.

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