U.S., Australia contract for support of P-8A Poseidon

The $115 million contract is for integrated logistics services and site activation support of the anti-submarine, anti-surface warfare aircraft.
By James LaPorta  |  Jan. 10, 2018 at 10:35 AM
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Jan. 10 (UPI) -- Naval Air Systems Command awarded Boeing a contract for services in support of the Boeing P-8A Poseidon, an anti-submarine, anti-surface warfare aircraft and maritime patrol platform.

The deal, announced Tuesday by the Department of Defense, taps Boeing with a contract worth more than $115.2 million under the modification to a previous contract.

The previous award was a fixed-price-incentive-firm target, firm-fixed-price, cost-plus fixed-fee contract that provides for integrated logistics services and site activation for the P-8A Poseidon for the U.S. Navy and Australian government.

Work on the contract will occur in the U.S. and Australia, and is expected to be completed in September 2021.

More than $34.4 million will be obligated to Boeing at the time of award contract, allocated from U.S. Navy fiscal year 2018 aircraft procurement funds and capital from foreign military sales, which will not expire at the end of the current fiscal year.

Under a joint agreement, the new modified contract combines purchases for the U.S. Navy and Australia. The Pentagon is expected to pay out more than $103.3 million, or what amounts to 90 percent of the total contract value, under a cooperative engagement agreement.

Australia will be obligated with the remaining 10 percent, more than $11.8 million.

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