Boeing and the U.S. Air Force MILSATCOM Systems Wing have exercised an $8.4 million contract option to activate Phase II of the Enhanced Polar System (EPS) payload study. Phase I began in July 2006 with a $1.5 million award to Boeing to define the next-generation communications payload for a polar-orbiting satellite. Phase II focuses on further payload system definition efforts and lays the foundation for future EPS system definition and production efforts. The work is expected to conclude in December 2007.