Boeing beats out Lockheed Martin, wins $3.48 billion missile defense contract

Boeing has been the primary contractor for the U.S.’s Ground-based Midcourse Defense (GMD) system since back in 2001 and, despite Lockheed Martin’s attempts to take the contract for themselves, the Missile Defense Agency has opted to once again go with Boeing.

The 7-year, $3.48 billion contract is a big win for Boeing, and obviously a big disappointment for Lockheed Martin and its partner, Raytheon.

“We believe the government conducted a fair and open competition, making the right decision for the future of the program,” Norm Tew, Boeing vice president and program director of GMD, said in a statement.

The GMD system utilizes radars and various other sensors to detect and shoot down long-range missiles and ICBMs. The GMD system, which was designed specifically to counter potential missile attacks from rogue states such as North Korea, is America’s only active long-range missile defense system.

While Lockheed Martin wasn’t willing to directly discuss their loss of the contract, the company said in a statement that they were happy “to have worked with an outstanding industry team to formulate a proposal that leveraged our strengths in missile defense, strategic weapon systems and performance-based logistics.”

“In selecting the Boeing and Northrop Grumman GMD team, the Missile Defense Agency retains the knowledge, skill and expertise of the world-class men and women who developed this one-of-a-kind system – the only industry team capable of affordable innovation for GMD’s future,” said Norm Tew, Boeing vice president and program director of GM told AL.com.

via AL.com

[Image credit: Reuters]