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Stock Markets February 23, 2026

BAE Systems Secures Up to $98.9M Air Force IDIQ for F-16 Avionics Sustainment

San Diego unit to deliver sustaining engineering for automatic test equipment under a sole-source contract covering 21 foreign military customers

By Avery Klein
BAE Systems Secures Up to $98.9M Air Force IDIQ for F-16 Avionics Sustainment

BAE Systems Information and Electronic Systems Integration Inc. has been awarded an indefinite-delivery/indefinite-quantity contract valued at up to $98,871,411 by the U.S. Department of War to provide sustaining engineering for F-16 avionics intermediate shop automatic test equipment. The work will be carried out at BAE's San Diego facility, covers foreign military sales to 21 countries, and is scheduled for completion by Feb. 28, 2037. The award was made via a sole-source acquisition and no funds were obligated at the time of award.

Key Points

  • BAE Systems Information and Electronic Systems Integration Inc. received an IDIQ contract valued up to $98,871,411 to provide sustaining engineering for F-16 avionics automatic test equipment.
  • Work is to be performed at BAE's San Diego facility with an expected completion date of Feb. 28, 2037, and the contract encompasses foreign military sales to 21 countries.
  • The award was a sole-source acquisition and, as announced, no funds were obligated at the time of the award; the contracting activity is the Air Force Sustainment Center Supply Chain Management Division at Hill Air Force Base, Utah.

BAE Systems Information and Electronic Systems Integration Inc. has been named the recipient of a contract that could total as much as $98,871,411, the Air Force Sustainment Center announced Thursday. The contract, issued by the U.S. Department of War, is for sustainment of commodities related to the F-16 platform.

Under the indefinite-delivery/indefinite-quantity (IDIQ) arrangement, BAE's San Diego operation will supply sustaining engineering services aimed at preserving the operational capability of fielded avionics intermediate shop automatic test equipment commodities sustainment components. The work is designated to take place at BAE's San Diego facility and carries an expected completion date of Feb. 28, 2037.

The award explicitly includes foreign military sales to 21 countries. Those nations listed in the contract notice are Jordan, Taiwan, Belgium, Denmark, Egypt, Iraq, Bahrain, Portugal, Thailand, Poland, Greece, Oman, Romania, Singapore, Türkiye, Korea, Chile, Morocco, Netherlands, Norway, and Pakistan.

According to the announcement, the contract was awarded through a sole source acquisition. At the time the award was announced, no funds had been obligated. The contracting activity is the Air Force Sustainment Center Supply Chain Management Division, located at Hill Air Force Base in Utah.

This contract covers sustainment engineering for automatic test equipment used in avionics intermediate shops supporting the F-16 fleet. The IDIQ structure allows the Air Force to order specific sustainment tasks over time, with the total potential value capped at the amount specified in the award notice.

The formal contracting office identified in the notice is the Air Force Sustainment Center Supply Chain Management Division at Hill Air Force Base, Utah. Beyond the contracting mechanism and the list of covered foreign military sales customers, the announcement did not obligate funds upon award and did not provide further financial disbursement details.

Summary of the contract details:

  • Contracting party: BAE Systems Information and Electronic Systems Integration Inc.
  • Contract type: Indefinite-delivery/indefinite-quantity (IDIQ)
  • Maximum value: $98,871,411
  • Scope: Sustaining engineering for F-16 avionics intermediate shop automatic test equipment commodities sustainment components
  • Primary work location: San Diego, California
  • Expected completion date: Feb. 28, 2037
  • Contracting activity: Air Force Sustainment Center Supply Chain Management Division, Hill Air Force Base, Utah
  • Foreign military sales: Coverage includes 21 countries
  • Award details: Sole source acquisition; no funds obligated at award

Risks

  • No funds were obligated at the time of award - this limits immediate financial impact and creates uncertainty about near-term cash flow for the program (impacts defense contractors and government procurement budgets).
  • The contract is sole-source, which may present program risk tied to a single supplier for sustainment engineering services (impacts supply chain resilience within defense electronics and avionics sectors).
  • The long performance window to Feb. 28, 2037 - while providing planning certainty, also introduces exposure to changes in demand or budgetary priorities over time (impacts defense budgeting and long-term supplier planning).

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