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Boeing to Produce Small Diameter Bombs for FMS Customers Under $194M Contract Modification

Boeing‘s (NYSE: BA) defense, space and security business has received a $193.6 million contract modification from the U.S. Air Force to manufacture additional Small Diameter Bombs for six foreign military sales customers.

The modification covers the procurement of 6,000 more SDB Increment 1 all-up-rounds under the company’s basic indefinite-delivery/indefinite-quantity contract for production lots 12-14, the Defense Department said Tuesday.

FMS clients Israel, Japan, Netherlands, Saudi Arabia, Singapore and South Korea ordered the precision-guided bombs.

DoD noted the modification increases the contract’s ceiling value from $700 million to $893.6 million.

The Air Force will obligate $99.7 million in fiscal 2015 and 2016 missile procurement funds and FMS funds.

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