Leidos Wins $987M Air Force Contract for F-16 Sustainment

The U.S. Air Force has awarded Leidos a firm-fixed-price contract worth $987 million for F-16 fighter jet support to the Taiwanese military.

The indefinite-delivery/indefinite-quantity contract is a foreign military sales agreement, but work will be performed at the company’s facilities in Reston, Virginia, until May 2034, the Department of Defense said Wednesday.

The IDIQ was awarded through a competitive acquisition process, with the Air Force receiving two offers. The Air Force Life Cycle Management Center at Hill Air Force Base in Utah serves as the contracting activity.

Taiwan’s F-16 Fleet

In 2019, Taiwan secured the United States’ approval for its purchase of over 200 F-16 jets for $8 billion. The Asian nation is strengthening its military capability in response to China’s increasing threats. According to the Taiwanese Ministry of National Defense, the first batch of fighter aircraft will arrive before the end of 2024.

The State Department in June also cleared Taiwan’s proposed FMS for F-16 spare and repair parts and related equipment and services for $300 million. The Defense Security Cooperation Agency said the transaction will ensure that the country’s F-16 fleet maintains operational readiness.

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