Boeing wins $805M contract for Navy drone

Chicago-based Boeing has been awarded an $805 million contract to develop the Navy’s MQ-25A unmanned aerial refueling drone, the Navy announced Thursday, handing the company’s Arlington-based defense business a much-needed win.

Bethesda, Maryland-based Lockheed Martin and San Diego-based General Atomics had also vied for the opportunity. Under the terms of the contract, Boeing is to produce four of the unmanned aircraft by 2024, the first major step in a defense program that is expected to eventually exceed $7 billion.

Boeing’s defense, space and security president and chief executive Leanne Caret attributed the company’s win to its experience with Navy aircraft and close understanding of the service’s needs.

“As a company, we made an investment in both our team and in an unmanned aircraft system that meets the U.S. Navy’s refueling requirements,” Caret said in a statement. “The fact that we’re already preparing for first flight is thanks to an outstanding team who understands the Navy and their need to have this important asset on carrier decks around the world.”

A Lockheed Martin spokeswoman said the company would meet with the Navy to determine next steps. The company has not ruled out protesting the contract win.

“Our team is highly disappointed to learn that the U.S. Navy did not select our offering. We believe our low-risk, purpose-built MQ-25 design offered the premier solution to expand the capability of the Navy’s carrier air wing,” the Lockheed spokeswoman said.