New Boeing Torpedo Contract Could Be Worth $47 Million

The Department of Defense awarded its third contract in as many months on Wednesday for contractors working on the High Altitude Anti-Submarine Warfare Weapon Capability, or HAAWC, project.

Following up on February's awards of $17.9 million and $7.2 million to Sparton subsidiary ERAPSCO, the Pentagon has awarded Boeing (NYSE: BA  ) a contract worth $19.2 million initially, to design and build HAAWC "Air Launch Accessory" assets and equipment, and to provide engineering service and support to same.

HAAWC refers to a planned weapon that could be launched from a Boeing P-8 Poseidon sub-hunting aircraft at altitudes of as much as 30,000 feet, glide for as much as 10 minutes before entering the water, and then seek out and destroy a targeted submarine.

Boeing's award takes the form of a cost-plus-fixed-fee, cost-plus-incentive-fee, cost-fixed-price-incentive, firm-fixed-price contract running through April 2016. The contract also contains an unspecified number of "options" that could extend it in length and increase its value, if exercised, to $47 million in total.

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