Boeing Lands $342M Contract Option to Supply Addtl KC-46A Tankers to Japan

The U.S. Air Force has awarded Boeing (NYSE: BA) a $342.1M contract modification to provide two additional KC-46A Pegasus refueling tankers to the Japanese government.

The contract option covers the supply of  KC-46A Aircrafts 3 and 4 to Japanese customers and increases the total value of the original award to $801M, the Department of Defense said Thursday.

The Air Force Life Cycle Management Center will obligate the modification’s full amount in foreign military sales funds at the time of award.

Work under the firm-fixed-priced award will take place in Everett, Washington, through June 30, 2023.

KC-46A is a multirole tanker designed to transport cargo and passengers in medium-threat environments to support U.S., coalition and allied military missions.

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