US Air Forces are getting $2 billion from the Department of Defense for new Air Force and Marine Corps service contracts.
The Defense Department announced Monday that it awarded the contracts to Boeing and Lockheed Martin, which both have been conducting the initial design and testing work on the F-35 Joint Strike Fighter.
The contracts are worth an estimated $2,800 each for the first $400 million of the contracts, which will be phased out over the next five years.
The first contracts will include about $1 billion worth of the F/A-18E/F Super Hornet and $1.3 billion worth for the F35.
The companies also each received $600 million in incentive pay for the work.
The Air Force awarded its initial $400-million contract for the program to Boeing in October, and the Marines in November.
The Pentagon’s initial $2-billion contract will be awarded to Lockheed Martin and Boeing in 2019, and then it will be retired in 2027.
Lockheed Martin has a $2bn contract to design, build, and deliver a fleet of F-16 Fighting Falcon aircraft, and Boeing has a contract to supply the first batch of the C-17 Globemaster III, which is currently being built by the Pentagon.
The Department of the Navy also awarded a $700 million contract to Lockheed to help build and test a new class of aircraft, the Sea King, which the Pentagon says is the fastest-moving and most capable air transport in the Navy’s fleet.