Boeing Awarded $6.9B Air Force Contract for SDB

Boeing (NYSE: BA) has secured an indefinite-delivery/indefinite-quantity contract valued up to $6.9 billion from the U.S. Air Force to manufacture and deliver small diameter bombs to the militaries of U.S., Japan, Bulgaria and Ukraine.

The Department of Defense said Tuesday the SDB Increment 1 contract includes foreign military sales and encompasses Lots 20 to 29 of SDB production.

The SDB is a guided munition that relies on GPS for navigation. According to Boeing, four SDBs can replace a single 1,000- or 2,000-lb weapon because of the munition’s size, expanding the number of weapons an aircraft can carry.

The bomb is designed to target airfields, air defense systems, missiles and artillery, and command, control and communications bunkers.

Boeing will manufacture the munitions at its facilities in St. Louis, Missouri, until Dec. 31, 2035.

The aerospace company also recently received a $600 million contract from the Air Force to conduct testing and integration activities for the Joint Direct Attack Munition and Laser Joint Direct Attack Munition.

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