Boeing lands up to $900M Air Force contract

Arlington County-based Fortune 500 aerospace and defense contractor Boeing has been awarded an up to $900 million Air Force contract to sustain and support T-38C Talon aircraft.

The indefinite-delivery, indefinite-quantity contract provides total lifecycle support for the Air Force’s T-38C avionics system. The T-38 Talon is a twin-engine, high-altitude supersonic jet trainer used by the U.S. Air Force to train pilots, including those who go on to fly frontline fighter aircraft. The T-38C has integrated avionics displays, a head-up display and an electronic “no drop bomb” scoring system in the cockpit.

According to the draft request for proposals issued in 2024, work will include maintenance services, engineering, contractor logistics support, software support, training systems and upgrades. A performance work statement included with the draft RFP indicated the Air Force operates more than 440 T-38C aircraft.

Boeing will perform work at numerous bases and locations in Mississippi, Texas, California, Oklahoma and New Mexico. According to the Department of Defense, the contract is expected to be completed by March 31, 2036.

The Air Force awarded the contract following a competitive solicitation that received only one offer. The Air Force Life Cycle Management Center’s Legacy Training Aircraft Division at Hill Air Force Base in Utah is the contracting activity and obligated $56.2 million at the time of award.

Boeing reported $89.5 billion in 2025 revenue and has more than 170,000 employees. It ended 2025 with a major restructuring that included cutting approximately 17,000 jobs.