The Boeing Company [NYSE: BA] has been awarded a $116 million U.S. Air Force contract for more than 4,000 Joint Direct Attack Munition (JDAM) tail kits.

Boeing will deliver the kits in 2009 and 2010. The Lot 12 production contract also includes options for additional tail kits in Lots 13 -17, with a potential total value of $590 million with deliveries through 2015.

"JDAM provides warfighters an effective, accurate and battle-tested weapon," said Kerry Bush, Boeing JDAM program manager. "The Lot 12 contact and its additional options assure the long-term availability of this cost-effective solution."

The Air Force and Navy have used JDAM weapons extensively in Afghanistan and Iraq. JDAM is a low-cost guidance kit that converts existing 500-, 1,000- and 2,000-pound unguided free-fall bombs into accurately guided "smart" weapons. Boeing has produced more than 190,000 JDAM tail kits since 1998.