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Boeing Gets $127M Contract Modification to Continue Risk Reduction Support for Future Presidential Aircraft

Air Force OneBoeing (NYSE: BA) has secured a potential $127.3 million contract modification to continue to perform risk reduction efforts for the U.S. Air Force’s Presidential Aircraft Recapitalization program.

The Air Force said Friday it issued the contract modification in order to determine how to procure, build, test and modify Boeing’s 747-8 commercial aircraft to become the next presidential plane.

“The information from these studies is essential for us to make informed decisions on the design and modifications to the 747-8 aircraft, which will have long-term impacts to sustainment costs of the next Air Force One, ” said Col. Amy McCain, PAR program manager.

“As we understand more about how to meet the detailed requirements, we can make deliberate choices to lower the cost and risks to the program.”

The modification to a contract awarded in January covers the second phase of the program’s pre-milestone B activities that include system specification, aircraft interior, power and electrical system, environmental control system, maintenance and sustainment methods, the Defense Department said Friday.

Work will occur in Washington through Jan. 31, 2018.

The Air Force Life Cycle Management Center will obligate $56.2 million from the service branch’s research, development, test and evaluation funds for fiscal 2015 and 2016 at the time of award, according to DoD.

The military branch proposed the PAR program in an effort replace the VC-25A aircraft by 2024.

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