DoD spurns Boeing in US$7.5bn interceptor deal

Posted By : Rina Latuperissa
5 Min Read

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For the second time in recent years, Northrop has bested Boeing in its specialty area.

The Defense Department on Tuesday finalized deals worth up to US$7.5 billion with two teams of defense contractors — Lockheed Martin and Northrop Grumman-Raytheon — for the Next Generation Interceptor (NGI) program, The Washington Post reported.

The first major defense procurement finalized under President Biden, the NGI is a new interceptor that can shoot incoming missiles out of the sky, part of a broader set of investments to ensure the United States can deal with a nuclear first strike from a hostile nation such as Russia or China.

Late last year, Northrop bested Boeing after being awarded a US$13 billion opportunity to build the Air Force’s next ballistic missile.

The contract will initially assign a combined US$1.6 billion of research and development funding to the two competing teams through 2022, the Post reported.

The deal includes options to expand those development efforts to US$3.6 billion for Lockheed and US$3.9 billion for the Northrop-Raytheon collaboration.

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