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Boeing Gets $1.1B MDA Contract Modification for Kill Vehicle Development

Boeing (NYSE: BA) has received a potential five-year, $1.1 billion contract modification from the Missile Defense Agency to continue to provide development support for the Redesigned Kill Vehicle program.

The modification increases the total value of a previously awarded contract from $4.7 billion to $5.8 billion, the Defense Department said Monday.

Boeing will collaborate with Lockheed Martin (NYSE: LMT) and Raytheon (NYSE: RTN) to develop the RKV system and perform work in Alabama, Arizona, California and other government designated locations through June 30, 2022.

The contract covers payload development, integration and ground testing with the Ground-based Midcourse Defense system and Ground-Based Interceptor platform as well as the production of four RKVs for initial deployment and flight testing services.

Boeing serves as the prime contractor on a contract to develop and sustain the GMD system for MDA.

MDA will obligate $250,000 from research, development, test and evaluation funds for fiscal 2017 at the time of award.

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