The U.S. Air Force has awarded Boeing (NYSE: BA) a potential $3.9 billion contract to design, modify, test, certify and field a pair of presidential aircraft.
USAF will obligate $64 million in fiscal 2018 research and development funds at the time of award, the Defense Department said Tuesday.
This award formalizes an agreement that President Donald Trump and the Chicago-based company reached in February.
The service branch initially announced in January 2015 the selection of the 747-8 airframe for the next Air Force One fleet.
Boeing is scheduled to complete work under the sole-source contract by December 2024.