Boeing has been awarded a $127 million U.S. Air Force contact modification for work on the Presidential Aircraft Recapitalization program.

The deal covers phase 2, pre-milestone B activities.

In the announcement, the Pentagon said the modification is another step in a deliberate process to control program risk and life cycle costs.

The contract involves conducting risk reduction activities needed to address the program's sustainment requirements and costs that are additional to $25 million awarded in January.

Activities involved in the modification will focus on the system specification, the environment control system, the aircraft interior, the electrical and power system, as well as sustainment and maintenance approaches.

It will aid in further defining detailed requirements and design trade-offs required to support informed decisions that will lead to a lower risk engineering and manufacturing development program, the Pentagon said, as well as lower life-cycle costs.

Work will be performed in Washington state, with an expected completion date of January 2018.

The Air Force Life Cycle Management Center is the contracting activity.