U.S. Army Apache parts contract with Boeing tops $1 billion

Boeing has been awarded a $636.1 million modification to its ongoing contract to repair and supply components for the U.S. Army’s AH-64 Apache helicopter fleet, according to a Department of War contract announcement.

The modification pushes the cumulative value of the underlying contract past $1.1 billion.

The modification, listed as PZ0022 to contract W58RGZ-24-C-0028, covers depot-level repair of complex Apache airframe components, system component support, supply of unique consumable parts, test equipment support, transmission infrastructure repair and retrograde, an obsolescence management program and broader supply chain management. Work will be performed at Boeing’s facility in Mesa, Arizona, with an estimated completion date of April 30, 2029.

While the modification carries a face value of $636.1 million, the U.S. Army obligated $506,314,739 in fiscal 2026 Army working capital funds at the time of award, leaving the remainder unfunded until additional money is committed. Army Contracting Command at Redstone Arsenal, Alabama, is the contracting activity.

The U.S. Army first awarded contract W58RGZ-24-C-0028 to Boeing in April 2024 for $116.7 million to cover performance-based logistics support for Apache airframe components. The U.S. Army modified the contract again in March 2025 for $101.6 million and in March 2026 for $95.9 million, bringing the cumulative value to $489.7 million before this latest addition.

Under a performance-based logistics arrangement, Boeing is paid to guarantee parts availability and repair turnaround for Apache airframe components rather than the U.S. Army separately purchasing and warehousing spare parts itself. The obsolescence management program included in the modification addresses a recurring problem for the Apache fleet: the aircraft has been in continuous production and service since 1984, and some original component suppliers no longer make parts designed decades ago, requiring Boeing to requalify replacement sources or redesign affected parts.

The U.S. Army’s Apache program of record covers 791 attack helicopters, a mix of older AH-64D Longbow aircraft and the newer AH-64E, all built or remanufactured at Boeing’s Mesa facility, which also serves as the U.S. Army’s depot for this repair work, a factor that has kept the contract with Boeing without competition since it was first awarded in 2024.

Boeing’s Mesa site has produced or remanufactured more than 2,700 Apaches since 1984 and remains the aircraft’s sole production and depot-level repair location, supplying not only the U.S. Army but more than a dozen foreign operators, including a 96-aircraft order for Poland signed in 2024.

The contract is separate from a $2.7 billion firm-fixed-price agreement the U.S. Army awarded Boeing in late December 2025 for broader Apache post-production support, also managed by Army Contracting Command at Redstone Arsenal.