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Boeing Secures $3.2B AF Contract Modification to Supply Bomb-Guidance Kits

boeing logoA Boeing (NYSE: BA) subsidiary has landed a potential $3.2 billion contract modification from the U.S. Air Force for Joint Direct Attack Munition tailkits.

Boeing’s defense space and security business will supply JDAM strap-on inertial guidance tailkits designed to receive GPS guidance updates for conventional inventory bombs, the Defense Department said Tuesday.

Air Force Life Cycle Management Center will obligate a combined $335.2 million from fiscal 2015 and 2016 ammunition and operations and maintenance funds.

The modification increased the contract value by approximately $1.5 billion to fill in depleted inventories because of warfighter demand, DoD added.

According to a report from USA Today in December, the Air Force has used more than 20, 000 missiles and bombs for its missions against the Islamic State militant group and has depleted its munitions stocks.

Boeing’s facilities have built more than 260, 000 JDAM kits to support Air Force, U.S. Navy, U.S. Marine Corps and other international allies’ operations.

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