Small Glide Munitions for A-130, Grey Eagle, etc.

Dynetics Inc., Huntsville, Alabama, is being awarded an indefinite-delivery/indefinite-quantity contract with five ordering periods and allowing for firm-fixed-price and cost-plus-fixed-fee task and delivery orders to be placed for the production of the small glide munition (SGM) in support of U.S. Special Operations Command (USSOCOM). The maximum contract value is $470,000,000. Fiscal 2016 procurement funds in the amount of $10,472,367 are being obligated at the time of award. The majority of work will be performed in Huntsville, Alabama, and could continue through fiscal 2030 depending on timing of orders placed by USSOCOM. This contract was awarded on a sole-source basis. U.S. Special Operations Command, Tampa, Florida, is the contracting activity (H92403-18-D-0003).

www.defensenews.com...

If it cost half a billion, I'd be concerned. But $470 million...chump change!

That's MAXIMUM contract value over 12 years, IF they choose to purchase. The first award is $10 million, which, indeed, is chump change.