Potential value of JDAM tail kit contract tripled in new deal with Boeing

In a new deal with Boeing, the Air Force has tripled the potential value of a multibillion-dollar contract for munition guidance tail kits.

A June 14 Defense Department announcement states the indefinite-delivery/indefinite-quantity contract for Joint Direct Attack Munition tail kits, spares, repairs and technical services was extended by five years and its ceiling raised by $6.5 billion. This modification brings the total potential value of the agreement to $10 billion.

Work will be performed in St. Louis, MO, and is expected to be completed by February 2025, according to the notice. At the time of award, $905 million are being obligated for the Lot 23 delivery order, using fiscal year 2017, FY-18 and FY-19 ammunition, FY-19 operations and maintenance and foreign military sales funds.

JDAM tail kits provide a guidance capability to existing bombs that can attack targets in adverse weather conditions. They are equipped with Global Positioning System Aided Inertial Navigation Systems.