Boeing Awarded New Contract to Provide Warhead Arming Devices to U.S. Air Force

HEATH, Ohio, July 14, 2014 –The U.S. Air Force has extended Boeing’s [NYSE: BA] work remanufacturing warhead arming devices for the nation’s air-launched cruise missile (ALCM), helping to ensure the readiness of the system.

Under a new two-year contract, valued at $7.3 million, Boeing will remanufacture warhead arming devices for the air-launched cruise missile. The contract includes an option for six additional years at an estimated value of $50 million.

"Providing these production systems to the Air Force fleet on schedule is our number one goal,” said Peggy Morse, vice president, Boeing Directed Energy & Strategic Systems. “This contract is a testament to the ALCM team’s expertise and commitment to support national security.”

Boeing has worked on ALCM since its conception. The ALCM is a long-range subsonic, self-guided missile that can be launched far from hostile territory and still reach its target.

The Boeing team in Heath will continue to perform all manufacturing and acceptances testing on the warhead arming devices to meet the Air Force’s original design requirements. The work is being done for the Air Force Nuclear Weapons Center Missile Sustainment Division, located at Tinker Air Force Base, Okla.

“Our maintenance, repair and overhaul facility remains ready and uniquely qualified to continue remanufacturing these devices,” said Ellen Power, Boeing Heath center director. “This agreement will not only sustain work at this site but will support the economic security of Boeing’s supplier base in Ohio, which is the largest in the United States.”

Boeing’s Strategic Fabrication Center in Heath also maintains the Air Force’s Minuteman III intercontinental ballistic missiles, and tests, repairs and calibrates almost every type of military aircraft guidance and navigation system for the Air Force, Navy and allied nations.