21.09.2019 16:44:00

Boeing Calls for Government Intervention Against Northrop in $60 Billion ICBM Competition

Boeing (NYSE: BA) is attempting to enlist the U.S. government to help it battle Northrop Grumman (NYSE: NOC) for a $60 billion contract to replace the Air Force's intercontinental ballistic missile. The company has complained the deck was stacked against it in the competition, but is now pushing Congress and the Pentagon to intervene.In July Boeing surprisingly reversed course and decided not to compete in the government's massive Ground Based Strategic Deterrent (GBSD) contest, leaving Northrop as the sole remaining bidder. The GBSD is a key cog in the Pentagon's $500 billion plan to modernize its nuclear arsenal and keep the nation's powerful nuclear deterrent in place. It's also one of the largest procurement contracts currently available. Despite Boeing's announcement, technically the competition is still ongoing. On Sept. 16, Northrop announced a long list of subcontractors who were partnering on its bid, including a who's who list of defense giants like Lockheed Martin, General Dynamics, L3 Harris Technologies, Honeywell, Textron, and United Technologies' Collins Aerospace.Continue reading
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