Boeing secures $2.8 billion contract for South Korean F-15 upgrades

Investing.com -- Boeing (NYSE: BA) has been awarded a $2.8 billion contract to upgrade F-15 fighter jets for the Republic of Korea Air Force, the U.S. Department of War announced Friday.

The hybrid cost-plus-fixed-fee and fixed-priced incentive contract will fund the design and development of integrated aircraft systems for the F-15K fleet. The work will be performed at Boeing's St. Louis, Missouri facility and is scheduled for completion by December 31, 2037.

The contract was acquired through a sole source acquisition process as part of the U.S. Foreign Military Sales program. Initial funding of $540 million has already been obligated for the project, which will be overseen by the Air Force Life Cycle Management Center at Wright-Patterson Air Force Base in Ohio.

In a separate development, Boeing also received a $25.5 million modification to an existing Navy contract for the production and delivery of 16 infrared search and track (IRST) pod block II weapon replaceable assemblies. This includes 16 fuel tank assemblies, 16 sensor assembly structures, and final system integration and acceptance testing.

The IRST work, supporting low-rate initial production Lot Eight for the Navy, will be conducted primarily in St. Louis, Missouri (79.7%) and Santa Ana, California (20.3%), with completion expected by August 2028. The Navy has allocated fiscal 2024 aircraft procurement funds for this non-competitive contract.

You May Also Be Interested In

• Citadel unwinds 80% of Aschenbrenner’s portfolio risk - report
• Micron Technology (MU) call put ratio 1.3 calls to 1 put as share price down 1%
• Microsoft (MSFT) spreader of 2800 contracts of October 455 puts and October 490 calls