MDA Awards Boeing GMD Support Contract

by: Matthew Potter
January 2, 2012

Category: Alaska, Boeing, Business Line, Companies, Contract Additions, Contract Awards, Department of Defense, development program, Events, Federal Budget Process, Lockheed Martin, logistics, MDA, missile defense, production program, Raytheon, Services, States | RSS 2.0

UPDATE – Lockheed announced today that it and its partners would not protest the decision to award the contract to Boeing.

For the last two year the U.S. Missile Defense Agency (MDA) has been working to award a new contract to manage and support the land based Groundbased Midcourse Defense (GMD) system. This system consists of interceptors based in Alaska and a world wide system of sensors to detect threats and guide the missiles to their targets. The GMD is designed to protect the United States from limited ballistic missile attack.

Boeing (BA) has been the prime contractor for the development, deployment and operation of the system since the early Nineties. A few years ago the Obama Administration cancelled plans to expand the system by installing missiles in Europe but decided to keep the existing assets operational. Last year MDA announced a competition for the support of the system and bids were delivered by Boeing and a team made up of Lockheed Martin (LMT) and Raytheon (RTN).

The announcement of the winner was supposed to have been made this summer but the MDA kept pushing it back so that ultimately it was announced just before New Years. The winner was the incumbent, Boeing, who will now receive a contract that has a value of up to $3.5 billion over the next seven years.

Obviously Lockheed and Raytheon are disappointed but there has been indications that they will protest the decision.

The bidders had submitted their final, revised proposals just before Thanksgiving which meant it took the MDA about thirty days to make their final decision.

While all three companies are involved in other missile defense programs that the current defense plans see as being expanded or invested in the win by Boeing is a big deal to that company as it keeps one of the largest programs in their hands. MDA may be one of the areas that sees flat budgets over the next few years as the U.S. adjusts its defense spending due to the end of the fighting in Iraq and Afghanistan and attempts to reduce the deficit.

Photo from U.S. Missile Defense Agency’s Flickr photostream.

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