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Boeing,Northrop Get Air Force Contracts08/22 06:11

   WASHINGTON (AP) -- The Air Force said Monday it has awarded contracts to 
Boeing Co. and Northrop Grumman Corp. for work that could lead to replacement 
of the nation's intercontinental ballistic missiles.

   The contracts are part of a planned overhaul of the U.S. nuclear arsenal 
that will cost tens of billions of dollars.

   The Air Force said that it gave Boeing a $349 million contract and Northrop 
Grumman a $329 million award to advance the technology needed to replace the 
Minuteman III missiles that date to the 1970s. The Air Force wants the work 
done in August 2020.

   A third bidder was Lockheed Martin Corp. A Lockheed spokeswoman said the 
company was disappointed, and looked forward to being briefed about the 
decision by the Air Force.

   Boeing and Northrop Grumman will compete for a much bigger payoff in 2020, 
when the Air Force picks a single company for the engineering, manufacturing 
and design work on the nation's intercontinental ballistic missile system.

   The Air Force estimated last year that it would cost $62.3 billion to 
replace the Minuteman III fleet. The Pentagon's Cost Assessment and Program 
Evaluation office has estimated that it could exceed $85 billion.

   The Air Force solicited bids last summer to begin work on replacing the 
ground-based Minuteman III missiles and air-launched nuclear cruise missiles, 
in what amounted to calling for a rebuilding of the nation's nuclear weapons 

   Pentagon officials have said that the Minuteman III might not defeat air 
defenses that are predicted to exist in 2030 and beyond. But arms-control 
advocates have said the Air Force could save billions by extending the life of 
existing missiles instead of building a new system.

   Both Boeing and Northrop Grumman have been involved in the ICBM program for 

   Chicago-based Boeing has built long-range missiles for the Defense 
Department since Minuteman I in the 1960s. It said its work on the 
missile-replacement effort will be done in Huntsville, Alabama; Ogden, Utah; 
Heath, Ohio; and other locations.

   Northrop Grumman, which is based in Falls Church, Virginia, has integrated 
technology in ICBM systems.


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