Navy Awards Boeing $119.7M for P-8A Retrofit Kits

A cost-plus-fixed-fee modification funds four kit installations on U.S. Navy P-8A aircraft in Jacksonville, Florida.

Updated on Nov. 5, 2026 in Military

Navy Awards Boeing $119.7M for P-8A Retrofit Kits

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The U.S. Department of War announced on Nov. 4 a $119.7 million contract modification awarded to Boeing for Increment 3 Block 2 retrofit kits for the P-8A maritime patrol aircraft. The modification exercises options for kits built to the Increment Three Block Two Engineering Change Proposal Six standard and was not competed.

Why it matters

The award advances the upgrade of the P-8A fleet, which the Navy is funding across about 130 aircraft at a budget of more than $3 billion. Fiscal 2027 Navy aircraft procurement funds cover $110.2 million of the award, with Australian cooperative partner funds covering $9.5 million.

The modification funds 18 kits in total across two actions, with 79.6% of the work done in Jacksonville, Florida, 10.9% in St. Louis, Missouri, and 9.5% in Mesa, Arizona. Work is due to finish in May 2030.

The players

Boeing

Boeing is the aerospace manufacturer that builds the A-kits and performs the retrofit work on the P-8A aircraft across its Jacksonville, St. Louis and Mesa facilities.

U.S. Navy

The U.S. Navy operates the P-8A Poseidon fleet and funds the Increment 3 Block 2 upgrade through its aircraft procurement budget.

The details

The modification is P00001 to order N0001926F1095 under basic ordering agreement N0001926G1002 and was awarded to Boeing as a cost-plus-fixed-fee action. Government-furnished B-kits carry the mission equipment the Navy buys separately, while Boeing builds the A-kits that carry the permanent structural and electrical changes needed to accept that equipment.

March 2024: Navy delivered the first P-8A to Boeing for the Increment 3 Block 2 modification.
June 2025: Boeing rolled out the first upgraded Increment 3 Block 2 aircraft.
September 2025: The Royal Australian Air Force received its 13th Poseidon aircraft.
October 2025: Boeing inducted the first Australian aircraft into the upgrade.
April 24, 2026: The Navy declared initial operational capability for Increment 3 Block 2.

Roadmap

The award continues the Increment 3 Block 2 upgrade that began with the first Navy aircraft delivery in March 2024 and reached initial operational capability in April 2026. It extends a program that is now moving from initial testing into fleet-wide retrofits across U.S. and Australian P-8A aircraft.

The modification funds four kit installations on Navy P-8As in Jacksonville, Florida, which means the work will be concentrated at that site rather than spread evenly across Boeing's facilities. Completion of the fleet upgrade is targeted for May 2030, so the schedule affects the Navy's operational readiness through the rest of the decade.

The takeaway

The award shows the Navy is moving the P-8A Increment 3 Block 2 upgrade from initial testing into fleet-wide production, with funding split between U.S. and Australian partners. Readers tracking defense modernization can watch whether the May 2030 completion target holds as installations ramp up.