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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2345508, ~/Articles/ArticleHandler.aspx, 7/24/2014 12:43:02 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement