Boeing Wins $50M Navy Deal To Aid F/A-18E/F & EA-18G Jets
Zacks Investment Research | Jun 28, 2017 09:44PM ET
Aerospace giant, The Boeing Company (NYSE:BA) , has secured a modification contract against a previously issued basic ordering agreement, from the Naval Air Systems Command, Patuxent River, MD. Work related to the new order is scheduled to be over by June 2020.
Details of the Deal
The contract is valued at $49.5 million. This new order incorporates an engineering change proposal. According to it, Boeing will develop, qualify, and flight test form-fit-function requirements of the pre-processor module – the Active Electronically Scanned Array Radar Interface 2 and the sensor hardware encapsulation layer narrowband controller weapons replaceable assemblies.
These defense equipments will be delivered to the U.S. Navy and the Australian government for their fleet of F/A-18E/F and EA-18G aircraft. The majority of the work will be performed in El Segundo, CA. The rest will be done at Forest, MS; Andover, MA; and St. Louis, MO. The contractor will utilize fiscal 2015 and 2017 aircraft procurement (Navy) funds as well as foreign military sales (FMS) funds to execute this order.
A Brief Note on F/A-18E/F & EA-18G Jets
Boeing’s F/A-18 Super Hornet – a twin-engine, supersonic, all weather multirole fighter jet – is the U.S. Navy’s primary strike-and-air superiority aircraft. It is capable of landing and taking off from an aircraft carrier. F/A-18/E is a single-seat and F/A-18/F is a twin-seat variant of the Super Hornet. These are about 25% larger than its predecessor, the F/A-18C/D, but comparatively contain 42% lesser structural parts.
On the other hand, Boeing’s EA-18G Growler is the most advanced Airborne Electronic Attack (AEA) aircraft that operates either from an aircraft or from land bases. It integrates advanced AEA capabilities that have been developed and manufactured by Northrop for the purpose of identifying, degrading and destroying hostile radar-guided air defense and communication systems.
Our View
With the meteoric rise of the Islamic State of Iraq and Syria (ISIS) in the past few years and more developing nations increasing their share of defense spending, the international market for defense equipment has been growing. This, in turn, has helped drive sales in the Zacks Investment Research
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