AAR, L3Harris Secure $1.2B Navy Contract for P-8A Poseidon Maintenance

AAR Government Services (NYSE: AIR) and L3Harris Technologies (NYSE: LHX) have been awarded indefinite-delivery/indefinite-quantity contracts by the U.S. Navy.

The Department of Defense said Friday the firm-fixed-price, time-and-materials contracts, which total an estimated $1.20 billion, cover maintenance and support services for the P-8A Poseidon aircraft.

AAR and L3Harris will perform scheduled and unscheduled aircraft depot maintenance for the Navy, the Royal Australian Air Force and foreign military sales customers. Work includes in-service repairs, planning and estimation, implementation of technical directives, airframe modifications and in-field maintenance support.

AAR will conduct work mainly in Indianapolis, Indiana, while additional tasks will be done in Wood Dale, Illinois; Miami, Florida; and Lake Charles, Louisiana. As for L3Harris, most of its work will be performed in Waco, Texas, while the remaining tasks will be carried out in South Madison, Mississippi; Santa Clarita, California; and Grapevine, Texas.

The contracts are expected to wrap up by September 2029. They were competitively procured via an electronic request for proposal, with three offers received.

Funds will not be allocated at the time of the award. Instead, the contractors will receive them as individual orders are awarded.