US Navy, Boeing Sign $2B Order for 13 P-8A Poseidon Aircraft

The U.S. Navy recently awarded Boeing (NYSE: BA) a $1.98 billion contract for 13 additional P-8A Poseidon aircraft, continuing the modernization of U.S. maritime patrol capabilities that will ultimately involve more than 100 P-8As. The contract includes long-lead funding previously approved by the Navy. The Navy has now ordered 37 of the 117 P-8As it is expected to buy. To date, 10 have been delivered. Based on the Boeing Next-Generation 737-800 commercial airplane, the P-8 provides anti-submarine, anti-surface warfare as well as intelligence, surveillance and reconnaissance capabilities. The P-8 is replacing the Navy's P-3 aircraft. “We're on budget and on schedule and the Navy will stand up initial operational capability of this transformational aircraft by the end of the year,” said Rick Heerdt, Boeing vice president and P-8 program manager. “This new contract award will continue to deliver aircraft to the fleet squadrons scheduled to receive their initial batch of P-8As on cost, schedule and performance parameters in accordance with the approved Acquisition Program Baseline,” said Capt. Scott Dillon, the Maritime Patrol and Reconnaissance Aircraft Program Office's program manager.Boeing assembles P-8As in the same facility where it builds all its 737s. The Poseidon team uses a first-in-industry in-line process that takes advantage of the efficiencies in the Next-Generation 737 production system. After initial assembly, the P-8A aircraft enter a separate mission system installation and checkout facility for final modifications and testing.Initial operational test and evaluation (IOT&E) was completed in March; the Navy announced July 1 that the P-8A program had passed IOT&E and the P-8A was ready for fleet introduction.Boeing's industry team includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.