$7 Billion Boeing AWACS Contract Gets More Funding

The Department of Defense closed out the week with awards of 14 separate contracts Friday. Out of more than a dozen winners, one company took home more than 20% of the contracts on offer: Boeing (NYSE: BA  ) .

Boeing's three contract wins Friday included:

  • A $17.7 million modification to a previously awarded firm-fixed-price contract. This contract, which has a foreign military sales component, calls on Boeing to produce at full rate 1,496 DSU-38/B precision laser guidance sets, or PLGSes, for the U.S. Navy (which is buying 509 units), the U.S. Air Force (463 units), and the governments of Saudi Arabia (496 units) and Japan (28). PLGS is the laser-seeker component on Boeing's JDAM joint direct attack munition -- the accessories Boeing uses to turn a "dumb bomb" into a "smart bomb."
  • A maximum $14.8 million firm-fixed-price, sole-source, definite quantity type contract with no quantity options contract for the supply of airframe structural support components to the Air Force. This contract runs through Aug. 31, 2018. 
  • An $11.4 million firm-fixed-price, fixed-price-incentive-firm, cost-plus-fixed-fee contract "re-baseline" contract to be completed by Dec. 31, 2015. This final award announcement is exceedingly vague on the details, but it appears to refer to a mid-life upgrade of French Airborne Warning and Control System, or AWACS, aircraft designated as "delivery order 67." DoD notes that this contract, issued originally back in May 2001 with an expected $7 billion lifetime value and a September 2019 completion date, has so far reached a cumulative "face value" of only $354.1 million.

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