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Friday
Dec302011

Boeing Beats Out Lockheed for Missile Defense Contract

Stephen Morton/Bloomberg via Getty Images(HUNTSVILLE, Ala.) --  The Boeing Company will hold on to the seven-year contract worth about $3.5 billion for the primary U.S. shield against intercontinental ballistic missiles, Bloomberg reports.

Boeing beat out the world's largest defense contractor, Lockheed Martin, and has held the contract totaling up to $18 billion since 1998, according to Bloomberg.

The system, called the Ground-based Midcourse Defense (GMD), uses radars and other sensors, communications terminals, command facilities and a 20,000 mile fiber optic communications network "to defend the United States against long-range ballistic missile threats," according to a statement The Boeing Company.

Dennis Muilenburg, president and CEO of Boeing Defense, Space & Security, said the selection was based upon a two-year proposal process.  According to Bloomberg, the award likely went to Boeing as a result of cost consideration.  For the first time, this contract will require that contractors be held financially responsible for poor quality parts.

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    Boeing Beats Out Lockheed for Missile Defense Contract - Business News - ABC News Radio

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