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Boeing to Continue F/A-18 Fleet Modernization Under $164M Navy Contract Modification

Boeing (NYSE: BA) received a potential two-year, $163.9M amendment under a U.S. Navy contract for aircraft service life modification work.

The company said Friday it will continue to modernize the Navy’s F/A-18 Super Hornet jets and establish a second SLM line under the program.

Establishment of a San Antonio-based line will follow the existing one in St. Louis. The modified agreement will fund modernization of 10 F/A-18s and includes a fiscal year 2020 funding option for up to 35 aircraft units.

The Navy aims to extend the service life of the 550-aircraft fleet from 6K flight hours to 10K and expects Boeing to deliver the first Super Hornet to the San Antonio SLM line by June.

The service branch will obligate funds with each task order as the company works to complete services by May 2021 as part of the contract modification, the Department of Defense said Friday.

Boeing plans to start converting Block II Super Hornets to the Block III configuration beginning in 2020, which will include updates to the network connectivity, flight range, cockpit system and communications system.

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