USA Orders 10,000 JDAMs for $240M
Boeing subsidiary McDonnell Douglas Corp in St Louis, MO received a $240 million firm-fixed-price with cost-reimbursement type for alternate disputes resolution contract for 10,000 Joint Direct Attack Munition (JDAM) Lot 10 Guided Vehicle (GV) kits. The JDAM is a strap-on kit that turns existing 500, 1000 and 2000-pound bombs into precision weapons with Inertial Navigation System (INS)/Global Positioning Systems (GPS) capability. Its cheap cost (under $25,000 per) and effectiveness have made it both a transformational weapons system and a major project success story; future upgrades include the addition of a laser sensor for even finer target correction and the ability to hit moving objects.
Solicitations began in November 2005, negotiations were complete in March 2006, and work will be complete March 2008. The Headquarters Air to Ground Munitions Systems Wing at Eglin Air Force Base, FL issued the contract (FA8681-06-C-0058).