Boeing (NYSE: BA) has received a potential $1.9 billion contract modification from the U.S. Army to produce 184 AH-64E Apache combat helicopters for the service branch and international customers, including Australia.
The company said Friday the award brings the contract’s total funded value to $2.1 billion and could increase to more than $3.8 billion upon the issuance of future obligations.
Under the modification, Boeing will hand over 115 remanufactured aircraft to the U.S. Army and could deliver 15 more Apaches upon exercise of options. Foreign military sales customers will receive the remaining 54 helicopters.
The Department of Defense said Friday the full obligated amount will come from Army aircraft procurement and FMS funds for fiscal 2023. Work will occur in Mesa, Arizona, through the end of 2027.
Boeing’s global services business will continue to provide training devices, support and test equipment kits, spare provisions, technical manuals, field engineering and depot support to help ensure warfighter readiness.
In early March, the company announced that the Army’s fleet of Apache attack helicopters recorded 5 million flight hours. The aircraft took its first flight in 1984.