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Boeing Gets $2B Contract Modification for Lot III P-8A Aircraft to Navy, Australia

Boeing P-8A PoseidonBoeing (NYSE: BA) has secured a potential two-year, $2.5 billion contract modification to build and deliver 16 full-rate production Lot III P-8A Poseidon military aircraft to the U.S. Navy and four to the Australian government.

The Naval Air Systems Command awarded the contract modification to exercise an option under the fixed-price-incentive-firm contract, the Defense Department said Thursday.

Contract work also covers obsolescence monitoring, program management evaluation and change assessment.

The Boeing-built P-8A Poseidon aircraft is designed for use in intelligence, reconnaissance and surveillance operations as well as anti-surface and anti-submarine warfare missions.

The company will perform work in Washington, Maryland, New York, Illinois, Utah, California and the U.K. through December 2018.

DoD said the contract modification consists of 83 percent Navy purchases worth $2.05 billion and 17 percent purchases from the Australian government valued at $417 million.

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