Dec. 18 (UPI) -- The Boeing Co. has been awarded a modified contract by the U.S. Air Force in support of AC-130U gunships.
The $18.1 million deal, announced on Dec. 15 by the Department of Defense but not awarded until Dec. 19, comes under the terms of a cost-plus-fixed-fee contract, which provides for cost-reimbursement if overrun costs are accumulated during execution of the contract.
The AC-130U gunships, nicknamed "Spooky," are used for close air support missions, along with air interdiction and armed reconnaissance. The aircraft has 40mm and 105mm cannons and a 25mm Gatling gun.
The contract calls for "integrated sustainment support" with an option for continuation of services that includes development, modification, sustainment and maintenance, which can bring the overall cost of the deal to more than $55 million.
Work on the contract will occur in Florida, Afghanistan and Kuwait, according to the Pentagon, and is expected to be complete by December 2018.
Boeing has been obligated $6.9 million from Air Force fiscal 2018 operations and maintenance funds at the time of award.