Boeing Receives $2.5 Billion P8-A Aircraft Contract For US Navy, Australia

Boeing received a $2,469,582,995 contract to exercise an option for the manufacture and delivery of 20 Lot III full-rate production P-8A aircraft for the Navy (16), and the Government of Australia (4).

The P8-A Poseidon are advanced maritime surveillance aircraft and only Australia and India besides the US Navy has them.

A US DoD contract announcement said that in addition, this option provides for efforts related to obsolescence monitoring, change assessment, and integrated baseline/program management reviews. 

Work is expected to be completed in December 2018.  Fiscal 2016 aircraft procurement (Navy) funds in the amount of $2,052,571,034 will be obligated at time of award, none of which will expire at the end of the current fiscal year.

This contract combines purchase for the Navy ($2,052,571,034; 83 percent); and the Government of Australia ($417,011,961; 17 percent), under a cooperative agreement.