Boeing picks up UAV contract

$43m later, Boeing's subsidiary Insitu is building UAVs.

Boeing subsidiary Insitu Inc. has won a $43.7 million contract to build the military's next generation of remote-controlled spy craft.

The company based in the Columbia River Gorge town of Bingen, Wash., beat out several competitors to develop the drone.

Design improvements and testing were expected to take two years, with production of the Integrator surveillance and reconnaissance drone scheduled to begin in 2013. The contract is for up to 56 Integrator systems.

Insitu's ScanEagle unmanned drones have been used by the U.S. Navy and Marine Corps since 2004. The company's drones are used primarily for surveillance.

By: Brant