The Department of Defense awarded its third contract in as many months on Wednesday for contractors working on the High Altitude Anti-Submarine Warfare Weapon Capability, or HAAWC, project.
Following up on February's awards of $17.9 million and $7.2 million to Sparton subsidiary ERAPSCO, the Pentagon has awarded Boeing a contract worth $19.2 million initially, to design and build HAAWC "Air Launch Accessory" assets and equipment, and to provide engineering service and support to same.
HAAWC refers to a planned weapon that could be launched from a Boeing P-8 Poseidon sub-hunting aircraft at altitudes of as much as 30,000 feet, glide for as much as 10 minutes before entering the water, and then seek out and destroy a targeted submarine.
Boeing's award takes the form of a cost-plus-fixed-fee, cost-plus-incentive-fee, cost-fixed-price-incentive, firm-fixed-price contract running through April 2016. The contract also contains an unspecified number of "options" that could extend it in length and increase its value, if exercised, to $47 million in total.
The article New Boeing Torpedo Contract Could Be Worth $47 Million originally appeared on Fool.com.
Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.