May 1 (UPI) -- The Royal Australian Air Force is set to receive P-8A Poseidon aircrew training services in a new agreement struck between Boeing and the U.S. Navy.
The deal, announced Monday by the Department of Defense, is valued at more than $40 million under the terms of a firm-fixed-price delivery order contract, which is a modification on a previous Pentagon basic ordering agreement.
The contract from Naval Air Warfare Center Training Systems Division, out of Orlando Fla., will provide operations and maintenance services to Royal Australian Air Force P-8A Poseidon aircrews and maintenance training devices, the Defense Department said.
The Boeing manufactured P-8A Poseidon was originally developed for use by the U.S. Navy. The aircraft is specifically designed for long-range, intelligence, surveillance and reconnaissance missions with a focus on both anti-submarine and anti-surface warfare.
Work on the contract will occur in Edinburgh, Australia, and is expected to be complete in March 2023.
More than $16.4 million will be obligated to Boeing at time of award. The funds will be allocated from foreign military sale accounts.
The Pentagon said none of the obligated funds will expire at the end of the current fiscal year.