On October 2, 1981, President Reagan announced that the Air Force would acquire 100 B-1Bs as part of their Strategic Modernization Program. The development contract was awarded to Rockwell International on January 20, 1982.
Two older B-1As were converted to B-1B prototypes and the first production B-1B flew on October 18, 1984. The total acquisition cost for the B-1B was set at $20.5 billion for 100 aircraft, spares and support equipment.

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