Summary
Boeing has been awarded a $2.8 billion contract to upgrade F-15 fighter jets for the Republic of Korea Air Force, the U.S. Department of War announced Friday. The contract is structured as a hybrid cost-plus-fixed-fee and fixed-priced incentive arrangement and is intended to fund the design and development of integrated aircraft systems for the F-15K fleet.
Scope and timeline
The announced work will be executed at Boeing's St. Louis, Missouri facility, with scheduled completion by December 31, 2037. The contract was obtained through a sole source acquisition under the U.S. Foreign Military Sales program. An initial obligation of $540 million has already been provided for the program, which will be managed by the Air Force Life Cycle Management Center at Wright-Patterson Air Force Base in Ohio.
Related Navy contract modification
In addition to the F-15K award, Boeing received a $25.5 million modification to an existing Navy contract. That modification covers production and delivery of 16 infrared search and track (IRST) pod block II weapon replaceable assemblies. The deliverables include 16 fuel tank assemblies, 16 sensor assembly structures, and associated final system integration and acceptance testing.
The IRST work supports low-rate initial production Lot Eight for the Navy. The work will be performed primarily in St. Louis, Missouri (79.7%) and Santa Ana, California (20.3%), with an anticipated completion date of August 2028. The Navy is using fiscal 2024 aircraft procurement funds for this non-competitive contract modification.
Key points
- Boeing secured a $2.8 billion hybrid contract to upgrade F-15K aircraft for the Republic of Korea Air Force; work set to finish by December 31, 2037.
- An initial $540 million has been obligated under the Foreign Military Sales process; program oversight will be provided by the Air Force Life Cycle Management Center at Wright-Patterson AFB, Ohio.
- Boeing also received a $25.5 million Navy contract modification for 16 IRST pod block II assemblies, with the majority of work in St. Louis and completion expected by August 2028.
Risks and uncertainties
- The F-15K upgrade program spans many years with a completion date of December 31, 2037, introducing long-term schedule exposure for the contract.
- Only $540 million of the $2.8 billion has been initially obligated, indicating that additional funding actions will be required over the life of the program.
- The Navy modification was awarded as a non-competitive contract and relies on fiscal 2024 aircraft procurement funds, highlighting funding-source and procurement-type constraints tied to that work.
Context for affected sectors
The awards touch the defense and aerospace sectors directly through aircraft modernization and sensor production. Procurement and program management entities within the military and defense contracting communities are involved, with manufacturing concentrated in specific U.S. facilities.
Conclusion
The announced awards detail multi-year production and development obligations for Boeing across airframe modernization and sensor system work. Contract structures, funding already obligated, oversight organizations, and completion timelines are specified in the government announcement.