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Boeing Gets $1.7B Air Force Contract Option to Build Additional KC-46 Tankers

Boeing (NYSE: BA) will manufacture 12 more KC-46 aerial refueling aircraft for the U.S. Air Force under a $1.69B contract option.

The award for the sixth tanker production lot covers licenses, data, subscriptions and a flat file, the Department of Defense said Tuesday.

In a separate announcement, Boeing said the new contract brings the number of KC-46 orders from the Air Force to 79 and the company provided 42 units to four military bases since January 2019.

Work under the modification will take place in Seattle through April 30, 2023.

The KC-46A multirole tanker is designed to refuel military aircraft compatible and transport personnel and equipment in various missions.

USAF awarded the lot 1 and 2 production contracts for 19 tankers in August 2016, then ordered an additional 15 planes in January of the following year.

The company received orders for 18 lot 4 aircraft and 15 lot 5 units in September 2018 and 2019, respectively.

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