Business & Economy

Boeing announces $1.09 billion contract with Army

A flag of US aerospace giant Boeing.
A flag of US aerospace giant Boeing.
Eric Piermont/AFP/Getty Images

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Boeing Space & Intelligence Systems today announced a $1.09 billion Wideband Global SATCOM contract with the U.S. Army for the production, launch and in-orbit activation of a seventh satellite in the communications network and procurement of materials for an eighth satellite.

The deal, part of the WGS Block II follow-on contract awarded in August 2010, also includes options for producing, launching and activating satellites eight and nine, according to Boeing.

"With three satellites in operation today, WGS is already making a huge difference for the warfighter,'' said Craig Cooning, vice president and general manager of Boeing Space & Intelligence Systems in El Segundo.

"Satellites 7 and 8 will address the growing demand for high-data-rate services worldwide," said Crooning.

WGS is a satellite-based Defense Department communications system. The contract will not result in any new jobs but Boeing spokesman Matthew Billingsley says this, along with other new business, will enable "current, stable workforce levels" to be maintained.

Production will be done at a company facility in El Segundo.