Defense awards contract to continue missile defense program

Defense awards contract to continue missile defense program

By Kevin McCaney

GCN Staff

DEC. 26—The Defense Department has awarded a contract to Boeing Co. to continue development of the National Missile Defense System. The contract, awarded Friday, covers seven years and has a potential value of $6 billion.

Defense selected Boeing in April 1998 to be the lead contractor for the missile defense system under a contract that expires in April. The new contract with Boeing's Space and Communications Group in Anaheim, Calif., exercises options under the original agreement and gives the incoming Bush administration the option of deploying the system as soon as possible, the department said.

Defense said the award ensures continuity in the system's development, including an expanded test program, although a decision to deploy the missile defense system has not been made. Terms of the agreement restrict the government's obligation to provide funds for the program that will be available next year. It will be up to the Bush administration and Defense whether to continue developing the system.

The agreement covers work to be performed by Boeing and its major subcontractors under a cost-plus-award-fee contract.

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