Boeing Clinches $7.5 Billion Deal to Develop 'Smart' Bombs for US Military

By Madz Dizon

May 29, 2024 10:05 PM EDT

Boeing Clinches $7.5 Billion Deal to Develop 'Smart' Bombs for US Military
The Boeing regional headquarters is seen amid the coronavirus pandemic on April 29, 2020, in Arlington, Virginia.
(Photo : OLIVIER DOULIERY/AFP via Getty Images)

The United States Air Force has given the Boeing Company  a $7.5 billion contract to produce more kits to convert bombs into "smart" munitions at its St. Charles facility.

US Defense Awards Boeing Sole-Source JDAM Contract

Boeing has been awarded a sole-source contract to complete the project by February 29, 2030. As part of the contract, Boeing will provide Joint Direct Attack Munition (JDAM) tail kits, spare parts, repairs, technical assistance, as well as sensor kits.

Last week, the US Department of Defense revealed the award for the manufacture of joint direct attack munitions (JDAMs), which will include tail kits and spares for combat purposes, as per St. Louis Business Journal.

According to a report from Defense News, the bombs will be equipped with guidance tail kits, with a range of 500 pounds to 2,000 pounds. The bombs can be directed from an aircraft towards a target on the ground.

Based on a report by Defense News, the recent contract has raised concerns within the U.S. military regarding the availability of sufficient munitions for its own arsenal, as well as for supporting allies like Ukraine, Taiwan, and Israel. 

According to the publication, the cost of each JDAM kit varies depending on the number purchased by the Air Force per year, ranging from approximately $25,000 to $84,000.

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Boeing Secures $1.3B Navy Contract for 17 F/A-18s

The company has just announced that they have successfully secured a $1.3 billion contract from the US Navy. 

This contract will enable them to deliver 17 new F/A-18s. Instead of coming to a close next year, the order has now extended the lifespan of the St. Louis County manufacturing line until 2027, STLToday reported.

Furthermore, Boeing is embarking on a significant $1.8 billion expansion of its facilities near St. Louis Lambert International Airport, as the competition intensifies with rival Lockheed Martin to secure the contract for constructing the U.S. military's next generation fighter.

The company boasts an impressive workforce of over 15,000 individuals in the region.

Students at Washington University and other college campuses in the St. Louis area are urging their schools to sever connections with the company due to its involvement in civilian casualties in the Gaza Strip.

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