Boeing gets $59 million contract mod for KC-46 production

March 28 (UPI) -- Boeing has received a $59 million contract modification to continue its production for the U.S. Air Force's KC-46 tanker aircraft.

Under the modification, the company will provide interim contracting support, a temporary service conducted in lieu of organic capability for a predetermined time. The deal allows Boeing to defer investment in all or part of required support resources.

The U.S. Department of Defense did not disclose a location for the work, but says it should be complete by March 2018.

Boeing received all funding at the time of the modification award. The work will be managed by the Air Force Life Cycle Management Center.

News of the contract modification comes as Boeing experiences delays in modernizing the tanker aircraft. According to a recent report released by the U.S. Government Accountability Office, the program is falling behind schedule despite falling costs.

The KC-46 Pegasus is a multirole tanker designed to refuel all types of U.S. and allied military aircraft while in flight. Operators can also use the plane to carry passengers, medical patients and cargo.