The U.S. Air Force Oct. 17 announced it has set terms for a $1.1 billion contract with Boeing Co. for the Wideband Gapfiller Satellite program.

The newly defined Block 2 contract follows the Air Force’s decision in February to let Boeing begin engineering and advance procurement for the communications satellites. The contract provides options for the second block of satellites in the system, a follow-on to the first block of three spacecraft. The second block of Wideband Gapfiller satellites will feature a new technology to feed extra bandwidth to spy planes and other surveillance platforms.

The first Wideband Gapfiller satellite is slated for launch in 2007. While Boeing will start on the fourth and fifth satellites this year, they are not expected to launch until at least 2011, according to the Air Force’s schedule.