Boeing secures $3.2 billion JDAM tailkit contract

By Leigh Giangreco / May 31, 2016 at 6:12 PM

The Air Force has awarded Boeing a $3.2 billion contract modification to continue developing the guidance system for the Joint Direct Attack Munition, the Defense Department announced Tuesday.

Boeing will supply "strap-on" JDAM guidance kits that can receive Global Positioning System updates to increase accuracy, according to a DOD statement. Work is expected to be completed by September 2020, and the contract includes foreign military sales. The fixed-price, indefinite-delivery/indefinite-quantity contract uses fiscal year 2015 and 2016 ammunition funds, as well as FY-16 operations and maintenance funds.

"The undefinitized contract action was awarded on Oct. 30, 2014, at a maximum amount of $1,748,000,000," the contract announcement states. "That amount has since increased by $1,457,563,047 due to warfighter demand and to replenish depleted inventories."

A combination of high-tempo operations and lower initial inventory has contributed to the shortfall in JDAM tailkits, according to written testimony from Air Force acquisition officials submitted March 8 to the Senate Armed Services airland forces subcommittee. The service plans to mitigate the shortfall by rebalancing its stockpiles across combatant commands, employing alternative precision-guided munitions and increasing tailkit production, according to the testimony.

"The Air Force is negotiating with Boeing to increase production capacity from 18,900 units per year to 36,500 by the fourth quarter of FY-17," the testimony states.

During an April 28 Defense Writers Group breakfast, Gen. Ellen Pawlikowski, head of Air Force Materiel Command, said the service's program executive officer for weapons has been "working aggressively" with Boeing to look at JDAM production and the potential to get more capacity out of existing production facilities.

Boeing has increased its JDAM production by almost 80 percent since July to meet ongoing domestic and international demand, and the company has the capacity to increase its quantities once contracts are in place, the company stated in a November 2015 press release.

The Air Force is expending smart munitions faster than it can procure them, but the service's proposed FY-17 budget seeks to mitigate its depleted supply from operations in Iraq and Syria. Although the base level of some munitions would decrease, the Air Force sought significant increases of JDAMs and Small Diameter Bombs through overseas contingency operations funding.

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