Teams Submit Their Revised Proposal for GMD Support Contract

by: Matthew Potter
November 23, 2011

Category: Alaska, Boeing, Business Line, Companies, Contract Awards, Department of Defense, development program, Events, Federal Budget Process, Lockheed Martin, logistics, MDA, missile defense, northrop grumman, Northrop Grumman Corp., Proposal, Raytheon, Services, States, U.S. Army | RSS 2.0

The U.S. Army and Missile Defense Agency have been operating and supporting the Ground Based Missile Defense (GMD) system for several years now. The system consists of a group of interceptors and control system in Alaska supported by a network of sensors and guidance radars across the globe. Originally this was to be expanded into Europe but the Obama Administration ended that plan to focus on ship based and shorter range Army systems. The current deployed portions though continue to need to be operated and supported.

Boeing (BA) was the lead contractor on the development and deployment of GMD. They have also been providing the necessary support. Last year the MDA decided to compete this contract with a goal of awarding the new one last fall. Two different teams of companies submitted proposals for this contract. Boeing teamed with Northrop Grumman (NOC) in a bid to maintain the work and they were challenged by Lockheed Martin (LMT) and Raytheon (RTN).

Due to the complexity of the contract evaluation MDA has pushed out award of the new contract several months. Most recently in October they delayed it again until nearer 2012. Boeing’s existing contract kept being extended to maintain the necessary support.

Now in the last week both teams submitted their final revised proposals to the MDA. This should be the final step in supporting a decision by the Government on the award of this multi-billion dollar contract.

Lockheed and Raytheon stressed their experience and work in support of various Army and Navy ballistic missile defense systems. The companies support the PATRIOT, THAAD and ship based STANDARD Missile-3 interceptors. They also make radars and software for the mission.

Boeing and Northrop also turned in their proposal on time with a stress on the fact that due to their experience with the system they offer the lowest risk and best value to the Government. Boeing also feels they have an advantage as the incumbent of minimizing the transition to the new contract. Lockheed and Raytheon would have to do some work hiring and organizing things after they won.

The contract is one of the largest currently in competition. It represents to the bidders a significant amount of earnings and revenue. The contest will be watched closely and will hopefully make up for some of the other cuts coming in the U.S. defense budget to support and acquisition contracts.

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