Stock Markets February 27, 2026

Boeing Wins $166.8 Million Navy Award to Sustain P-8A Software and Engineering

Cost-plus-fixed-fee IDIQ will fund software sustainment, maintenance and modernization for P-8A systems across multiple U.S. locations through 2030

By Avery Klein BA
Boeing Wins $166.8 Million Navy Award to Sustain P-8A Software and Engineering
BA

Boeing Co. (NYSE:BA) has been granted a $166.8 million cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract by the U.S. Department of War to deliver engineering and software support for the Navy's P-8A maritime patrol aircraft systems. The award covers a range of software sustainment activities and hardware-related modernizations, with work allocated across facilities in Seattle; St. Louis; and Huntington Beach and a projected completion date of December 2030.

Key Points

  • Boeing received a $166.8 million cost-plus-fixed-fee, IDIQ contract to provide engineering and software support for P-8A systems.
  • Work scope includes engineering analysis, software maintenance, support services, and modernization of software and related hardware, plus sustainment tasks addressing obsolescence, improvements and enhancements.
  • Work will be performed primarily in Seattle (78%), with additional work in St. Louis (12%) and Huntington Beach (9%); the contract runs through December 2030 and was awarded by Naval Air Systems Command under contract N0001926D0003.

The Boeing Co. (NYSE:BA) will provide engineering and software sustainment services for the U.S. Navy's P-8A systems under a $166.8 million contract awarded by the U.S. Department of War. The contract follows a cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity structure and defines a scope of work centered on software and engineering tasks.

According to the award documents, the contract encompasses engineering analysis, software maintenance, and software support services. It also covers modernization efforts for software and associated hardware capabilities tied to the P-8A program. In addition, the work under the agreement includes software engineering sustainment activities specifically addressing obsolescence issues, as well as improvements and enhancements to the systems.

Execution of the work will be distributed across three U.S. locations. Seattle, Washington, is set to handle 78% of the work; St. Louis, Missouri, will perform 12%; and Huntington Beach, California, will account for 9% of the effort. The contract carries a projected completion timeline through December 2030.

No funds were obligated at the time the contract was awarded. Instead, funds will be obligated on a per-order basis as individual orders are issued under the IDIQ. The award was not competed, and Naval Air Systems Command, located in Patuxent River, Maryland, is listed as the contracting activity under contract number N0001926D0003.


Context and scope

The contract's structure - cost-plus-fixed-fee and indefinite-delivery/indefinite-quantity - frames payments and procurement flexibility. The stated tasks focus on maintaining and modernizing software while addressing hardware capabilities tied to the P-8A platform. Explicit sustainment activities include responses to obsolescence and the implementation of improvements and enhancements as needed.

Timeline and funding mechanics

The contract is anticipated to remain active through December 2030. Initial award did not obligate funds; funding will be applied when individual orders are placed under the IDIQ. The award process did not involve competition, and the Naval Air Systems Command in Patuxent River, Maryland, is the responsible contracting authority under contract number N0001926D0003.

Reporting on this award is based solely on the contract information released with the award notice.

Risks

  • No funds were obligated at the time of award; funding will depend on future individual orders, introducing execution timing uncertainty for the work and related cash flows.
  • The contract was not competed, which may raise administrative or oversight questions tied to procurement processes and future order placement.
  • The multi-year nature of the contract through December 2030 means changes in program requirements, technology obsolescence timelines, and resource allocation could affect execution of the stated sustainment and modernization tasks.

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