The Boeing Company [NYSE: BA] announced its first contract award under the U.S. Air Force Future Flexible Acquisition and Sustainment Tool (F2AST) program. The award is a $19.1 million Air Force Special Operations Command contract for AC-130U Gunship operational flight and simulation software sustainment/maintenance; field service representative support; configuration, data and Obsolescence management; and intermediate-level repairs.

The government is expected to negotiate three annual options during the first quarter of this year. An option may be exercised every 12 months.

"Boeing is pleased to receive the first of what we believe will be many contract orders to support the F2AST program for the U.S. Air Force," said Ken Hill, director of Special Operations Forces support for Boeing Integrated Defense Systems in Fort Walton Beach. "We have assembled a world-class team to support our warfighters in this vital sustainment contract."

The Air Force selected Boeing in July 2008 as one of the companies to compete for contracts to support the projected F2AST program. Boeing has extensive experience supporting Air Force-operated weapon systems and has assembled a diverse network of large, small, and minority- and women-owned suppliers to offer cost-effective and innovative sustainment solutions.

F2AST combines the existing Flexible Acquisition and Sustainment Tool (FAST) program and the Integrated Weapons System Support Program (IWSSP) into one indefinite delivery/indefinite quantity contract that will include development, modifications, depot maintenance, spares and repairs on dozens of Air Force platforms, support systems, subsystems and components.

"Boeing is the only F2AST competitor with extensive experience as a prime contractor on both FAST and IWSSP contracts. Our team has an outstanding record of support for these Air Force programs," Hill said.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense 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 Integrated Defense Systems is a $32 billion business with 70,000 employees worldwide.