Navy awards Boeing $1.5B P-8A contract, includes sales to South Korea, New Zealand

The Navy today awarded Boeing a $1.5 billion contract modification for 18 P-8A aircraft to be used by the Navy, South Korea and New Zealand, according to a Defense Department statement.

"The procurement also includes a segregable effort consisting of unknown obsolescence for Lot 11, Class 1 change assessment and obsolescence monitoring as well as non-recurring engineering for the Republic of Korea," the statement said.

Work is expected to be completed by October 2023.

The P-8A is a maritime surveillance aircraft that replaces the Navy's P-3 manufactured by Lockheed Martin.