Key insights
- Boeing secured an $855M Navy contract for P-8A aircraft production, signaling continued government support. While positive for Boeing, the contract's impact on the broader US equity market is limited due to its specific nature and long-term completion timeline (2030).
Investing.com - The U.S. Department of War awarded Boeing Co. (NYSE:BA) an $854,672,911 contract modification for the production and delivery of four P-8A Lot 13 aircraft to Foreign Military Sale customers, the department announced Wednesday.
The modification to the firm-fixed-price, cost-plus-fixed-fee contract also covers non-recurring engineering for P-8A diminishing manufacturing sources and material shortages, software integration, and hardware updates for the Navy and FMS customers. Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
Work will be performed in Seattle, Washington (98.22%); Huntington Beach, California (1.1%); and various locations within the continental U.S. (0.68%). The work is expected to be completed by September 2030.
Foreign military sales customer funds in the amount of $852,589,326 and fiscal 2024 aircraft procurement (Navy) funds in the amount of $2,083,585 will be obligated at the time of award. The Navy funds will expire at the end of the current fiscal year.
The contract was not competed.
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