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Home » Blog » Pentagon Adds $13.4B to Boeing Contract Ceiling for Allied Arms Sales

Pentagon Adds $13.4B to Boeing Contract Ceiling for Allied Arms Sales

DefenseIndustry.org
By DefenseIndustry.org
September 14, 2026
1 Min Read
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A U.S. Air Force KC-46A Pegasus parked at Travis Air Force Base, California. (Photo: U.S. Air Force / Marharyta Chumakova)
A U.S. Air Force KC-46A Pegasus parked at Travis Air Force Base, California. (Photo: U.S. Air Force / Marharyta Chumakova)

WASHINGTON — The U.S. Air Force has bumped the cap on an existing Boeing Co. contract by $13.4 billion, pushing its total potential value to $19.1 billion as foreign military orders continue to pile up.

The updated agreement (FA8609-19-D-0007) gives the Pentagon a ready-made vehicle to process weapon and support sales to international partners through April 2035. Japan and Israel are named as primary buyers under the expanded scope, though the contract is structured to accommodate additional allies down the line.

Raising the ceiling rather than negotiating new contracts from scratch allows the military to bypass administrative bottlenecks when allies submit formal purchase requests.

Deal Summary

  • Contractor: The Boeing Co. (Seattle, Wash.)
  • Customer: U.S. Air Force Life Cycle Management Center
  • Ceiling Increase: $13.4B (from $5.7B to $19.1B)
  • Completion Date: April 28, 2035
  • Funding Status: $0 obligated at award; cash moves only when specific task orders are cut.

The work will be centered around Boeing’s Seattle facilities. No upfront cash was distributed with the announcement, as Foreign Military Sales (FMS) funds are drawn down incrementally when individual purchases are finalized.

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