NAVAIR Awards Boeing $235M P-8A Long Lead Parts Contract Modification

Boeing P-8A PoseidonBoeing (NYSE: BA) has been awarded a $235.3 million contract modification by the Naval Air Systems Command to obtain long-lead materials needed for the U.S. Navy‘s P-8A maritime aircraft program.

The modification covers parts, components and equipment that Boeing will need to produce and deliver 11 full-rate production Lot IV P-8As, the Defense Department said Tuesday.

The Navy  is obligating the full amount at the time of award from fiscal 2016 aircraft procurement funds.

Boeing is scheduled to complete work under the new contract modification by January next year.

NAVAIR awarded a potential $2.5 billion modification to Boeing in January to exercise an option under a previously awarded contract for the company to start work on 20 Lot III FRP P-8As for the U.S. Navy and Australia.

The Navy ordered an additional two P-8As as part of the third full-rate production batch through a separate $276 million contract modification awarded early last month.

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