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Boeing Gets $6.5B Air Force Contract Modification for JDAM Guidance Kits

Boeing’s (NYSE: BA) defense space and security business has received a potential five-year, $6.53B contract modification to continue providing the U.S. Air Force with Joint Direct Attack Munition tail kits.

The modification includes the provision of spares, technical support and repair services to the service and foreign military sales clients and increases the ceiling of a previously awarded indefinite-delivery/indefinite-quantity contract to $10B, the Department of Defense said Friday.

Work will occur in St. Louis through Feb. 28, 2025.

The Air Force Life Cycle Management Center will obligate at the time of award $904.8M in ammunition funds from fiscal year 2017 to FY 2019, FY 2019 operations and maintenance funds and FMS funds for the lot 23 delivery order.

A JDAM kit consists of an inertial navigation system, GPS and body strakes designed to turn unguided bombs into smart weapons.

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