The White House and Boeing (NYSE: BA) are in the final phase of talks over the terms of a potential deal to modify a pair of 747-8 aircraft and convert them into presidential planes, Defense One reported Thursday.
Sources said Boeing CEO Dennis Muilenburg met with President Donald Trump Tuesday at the White House to address the impasse over the price of the future Air Force One planes.
The type of contract to be signed between the firm and government has been one of the sticking points during the negotiations, sources told Defense One.
The U.S. Air Force intends to sign a fixed-price contract that would direct the company to procure the replacement aircraft at an agreed price and shoulder any cost overruns.
A deal over the two Air Force One planes is anticipated to be announced soon, the report added.
The service branch procured in August 2017 two Boeing-built 747-8 aircraft that will be modified to replace the aging VC-25A planes as part of the Presidential Aircraft Recapitalization program.