Saudi Air Force F-15 modernization: ~$11.2B — to Boeing via the U.S. Air Force (Foreign Military Sales; USAspending)
The U.S. Air Force awarded a contract for the Royal Saudi Air Force (RSAF) F-15 fleet modernization program to Boeing. The value is about $11.2 billion ($11,204,226,413). It is an example of "Foreign Military Sales (FMS)," in which the U.S. brokers an ally's procurement; the cost is borne by the purchasing country (Saudi Arabia).
Contract key facts
- RecipientBoeing
- Contract value$11,204,226,413 (≈$11.2B)
- BranchAir Force
- Awarding agencyDepartment of Defense
- Awarding sub-agencyDepartment of the Air Force
- Award typeDEFINITIVE CONTRACT
- Period of performance2012-03-08 〜 2023-05-31
- Contract ID (PIID)FA863412C2651
Contract scope (original)
RSAF F-15 FLEET MODERNIZATION PROGRAM
Key points
- Via the U.S. Air Force, Saudi (RSAF) F-15 modernization was ordered from Boeing
- Value ~$11.2B ($11,204,226,413; multi-year cumulative), definitive contract, Mar 2012–May 2023
- Foreign Military Sales (FMS) = the U.S. brokering an ally's procurement government-to-government
- Cost borne by the purchaser (Saudi Arabia) — different in character from pure U.S. defense spending
- Under FMS the purchaser does not contract with the company; the US government assembles it through its own procurement process.
1Modernizing the Royal Saudi Air Force F-15
This contract covers the Royal Saudi Air Force (RSAF) F-15 Fleet Modernization Program.
2Foreign Military Sales as the framework
This contract is under Foreign Military Sales (FMS), the framework by which the U.S. government brokers equipment procurement for allied and partner nations on a government-to-government basis. Under FMS, the U.S. government uses its own acquisition processes to assemble equipment or services and provide them to the purchasing country.
Because the cost is borne by the purchaser (here, Saudi Arabia), it differs in character from pure U.S. defense spending even though it appears in U.S. spending data.
3Upgrading an aircraft long in service
Saudi Arabia has long operated the F-15, and this contract covers the modernization (upgrade and capability enhancement) of that fleet. FMS is an important mechanism that also bears on alliance maintenance, interoperability, and sustaining the U.S. defense industrial base; this award shows its scale.
4Who contracts with whom under FMS
Under Foreign Military Sales the purchasing country does not contract with the company directly. The US government stands in the middle and uses its own procurement process as it stands. That this record appears in US spending data follows from that arrangement.
- 1The purchasing country states a requirementSaudi Arabia seeks modernisation of the F-15 fleet it operates
- 2The US government assembles itThe Air Force gathers the equipment and services through its own procurement process
- 3A contract is placed with a companyIt appears in US spending data as a contract between the US government and Boeing
- 4Delivery to the purchasing countryCost is borne by the purchaser, and equipment and services are handed over
Because of that structure it appears in US spending data while differing in character from pure US defence expenditure. FMS bears on maintaining alliances and securing interoperability, and at the same time sustains the US defence industrial base. About $11.2 billion shows both of those sides sitting inside one contract.
Why it matters
A read on the scale and mechanics of U.S. defense exports (FMS). The point that the cost is borne by the purchaser matters when interpreting defense spending. Useful for readers tracking the defense industry, security, and alliances.
FAQ
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Sources (primary)
This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.
- USAspending (award details)
- Contract ID (PIID)：FA863412C2651