The Air Force has awarded Boeing a $2.2 billion contract for guaranteed minimum Lot 15 production of the precision-guided Small Diameter Bomb I.
The agreement will have a five-year ordering period and provide munitions, containers and carriages for Defense Department and foreign military sale customers, according to a contract notice the Pentagon released Thursday. Foreign customers include Australia, Belgium, Israel, Japan, Korea, Netherlands and Norway.
The Air Force obligated $247.5 million at the time of the award and while DOD’s announcement doesn’t disclose a procurement quantity, the service’s latest budget documents show the fiscal year 2020 SDB I deal is expected to cover 6,878 munitions for the Air Force and 922 for FMS partners.
The documents also indicate the FY-20 contract is intended to account for the last major procurement quantity before dropping to no more than 2,500 munitions per budget cycle across the future years defense program.
“The Department of the Air Force had increased production in previous fiscal years to replace depleted stockpiles, but as we approach desired inventory levels, procurement is being reduced to match operational need,” service acquisition executive Will Roper told the House Armed Services tactical air and land forces subcommittee earlier this year.