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Boeing Gets $2B Navy Modification on P-8A Aircraft, Parts Production Contract

Boeing (NYSE: BA) has received a $2.2 billion contract modification to build 17 P-8A Poseidon maritime patrol aircraft as well as associated long lead parts for the U.S. Navy, foreign military sales customers and cooperative agreement partners.

The Defense Department said Thursday the modification also covers unknown obsolescence, class I change assessment, obsolescence monitoring and integrated baseline/program management support.

Work will occur through December 2020 in Washington, Maryland, New York, Illinois, California, Utah and various locations within and outside U.S.

The Naval Air Systems Command will obligate $1,75 billion at the time of award from fiscal 2017 Navy aircraft procurement, cooperative agreement and foreign military sales funds.

Boeing secured a $235.3 million modification from NAVAIR last year to provide long-lead materials needed for the Navy’s P-8A program.

Boeing-built P-8A aircraft work to support long-range anti-submarine warfare; anti-surface warfare; and intelligence, surveillance and reconnaissance missions for maritime and littoral operations.

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