FORT WALTON BEACH, Fla., Feb. 29, 2012 -- Boeing [NYSE: BA] has received an $11.4 million indefinite delivery, indefinite quantity (IDIQ) contract from the U.S. Air Force. The first delivery order under this contract is worth $4.6 million and will provide parts to be used to complete installation of 25mm Ammunition Storage and Handling Systems (ASHS) on four AC-130U gunships. The contract also includes spares to support sustainment of the ASHS. The Boeing Fort Walton Beach facility will build the components for delivery to Robins Air Force Base, Ga.

"The AC-130U is one of Air Force Special Operations Command's most requested aircraft in the current conflict, and supporting this hardworking aircraft is in the DNA of the Fort Walton Beach sustainment team," said Chet Gray, Platform Readiness and Sustainment manager for Boeing. "This new contract, which expands our work scope on the AC-130U, is a result of the service and commitment that Boeing has provided to Air Force Special Operations Command and Robins Air Force Base since the AC-130U's mission began."

Boeing has been the prime maintainer of the ASHS since 1994. The ASHS feeds ammunition to the 25mm cannon that is located inside the aircraft's cargo hold; it is capable of carrying 3,000 rounds.

The IDIQ contract provides customers with flexibility in both quantities and delivery scheduling while allowing Boeing to expedite the ordering of supplies after a requirement is identified. Production of the parts will begin immediately, with delivery scheduled for December.

Boeing Fort Walton Beach is the headquarters for Boeing's maintenance, modification and upgrade capabilities for the U.S. Air Force Special Operations Forces. The team provides field service and support in the United States and around the world for the AC-130U and CV-22. Its products and services include:

• specialty, software, and modification engineering
• logistics/product support
• technical order development
• mechanical and avionics repair.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 62,000 employees worldwide. Follow us on Twitter: @BoeingDefense.

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Contact:

Amy Hartweger
Boeing Defense, Space & Security
314-232-7235
amy.hartweger@boeing.com

Jennifer Hogan
Maintenance, Modifications & Upgrades
405-818-7859
jennifer.c.hogan@boeing.com