Boeing (NYSE: BA) has been awarded a two-year, $7.3 million contract to continue producing warhead arming technology for the Air Force’s air-launched cruise missile systems.
The company produces and tests ALCM warhead devices for the Air Force’s Nuclear Weapons Center Missile Sustainment Division at a manufacturing center in Heath, Ohio, Boeing said Monday.
ALCMs are self-guided and designed to travel at subsonic speeds to reach its target, according to Boeing.
“Providing these production systems to the Air Force fleet on schedule is our number one goal, ” said Peggy Morse, Boeing vice president for directed energy and strategic systems.
“This contract is a testament to the ALCM team’s expertise and commitment to support national security, ” Morse added.
The contract extension also contains an estimated $50 million option for an additional six years.
Boeing’s Heath facility is also built to maintain aircraft guidance and navigation equipment for the U.S. military and allied nations.