The Boeing Company reported that 49% of its revenues were earned pursuant to US government contracts.
This includes foreign military sales (FMS) through the US government.
Business conducted pursuant to such contracts is subject to extensive procurement regulations and other unique risks.
After having coverage in that same indicator of 39% in 2019, the portion rose to 51% in 2020.
Boeing is a company that designs, manufactures and sells airplanes, helicopters, rockets, satellites, telecommunications equipment and missiles throughout the world.
In general, their businesses are heavily regulated in most of their markets.
The company works with numerous agencies and entities of the United States government, including, but not limited to, all branches of the United States military, NASA, the Federal Aviation Administration (FAA), and the Department of National security.
At the same time, similar government authorities exist in their markets outside the United States.
Its income in 2021 was 62,286 million dollars, less than in the previous year (58,158 million) and than in 2019 (76,559 million).
Boeing contracts
The US government and other governments may terminate any of Boeing’s government contracts at their convenience, as well as for breach based on failure to meet specified performance requirements for the company.
If any of the US government contracts were terminated for convenience, the business would generally be entitled to payment for work completed and allowable termination or cancellation costs.
Also, if any of your government contracts were terminated for noncompliance, the U.S. government would generally pay only for work that has been accepted and may require the company to pay the difference between the original contract price and the cost of repurchasing. the items of the contract, net of the accepted work of the original contract.
The US government may also hold Boeing liable for damages resulting from non-compliance.
In the United States, commercial aircraft products must meet FAA standards governing production and quality systems, airworthiness and installation approvals, repair procedures, and ongoing operational safety.
In addition, new aircraft models and new aircraft derivatives must obtain FAA certification before entering service.
Outside the United States, similar requirements exist for airworthiness, installation, and operating approvals.
These requirements are generally administered by the national aviation authorities of each country and, in the case of Europe, coordinated by the European Union Aviation Safety Agency.
