$8.3M in New U.S. Air Force Orders Extends T-38 Fleet Life
Event summary
- $8.3M in new orders from U.S. Air Force for T-38 aircraft modification kits under existing IDIQ contract.
- Total funded value of the contract now stands at $69M, with deliveries extending through 2028.
- Programs aim to extend T-38 fleet life by 10,000 flight hours and strengthen critical fatigue areas.
- CPI Aero's total backlog exceeds $495M, including $95M in funded performance obligations.
The big picture
The U.S. Air Force's continued investment in T-38 structural upgrades reflects the aircraft's enduring role in pilot training despite its age. With fewer than 500 of the original 1,200 T-38s remaining operational, sustainment programs like PCIII and TRIM are critical to maintaining fleet readiness. CPI Aero's $495M backlog positions it as a key player in defense aerostructure services, particularly for life-extension programs.
What we're watching
- Contract Execution
- Whether CPI Aero can maintain delivery schedules and quality standards through 2028.
- Fleet Modernization
- The pace at which the Air Force extends T-38 operational life beyond current programs.
- Competitive Positioning
- How CPI Aero leverages this contract to secure additional defense sustainment work.