$85B Nuclear Missile Competition Gets Messier as Feds Investigate Northrop

The Pentagon’s effort to build a new ICBM just took another step toward a no-competition sole-source award — and the prospective lone bidder just came under federal investigation for anti-competitive behavior.

Two pieces of news broke late this week concerning the U.S. Air Force’s Ground Based Strategic Deterrent program, whose total value has been estimated at $85 billion. First, the service stopped paying Boeing for ICBM-related technology-development work that began in 2017. In response, the company has begun to break up the specialized team of engineers it brought together to create a replacement for the Cold War-era Minuteman III, according to a Boeing source close to the project.

Second, a Northrop Grumman filing revealed that the Federal Trade Commission is looking into allegations that the company is not abiding by an agreement that allowed its 2018 acquisition of Orbital ATK, one of just two U.S. makers of solid rocket motors. Those terms required the company to sell rocket motors “on a non-discriminatory basis to all competitors for missile contracts.”

Until July, Boeing and Northrop had both been planning to bid on the ICBM contract. Then Boeing announced that it would withdraw, charging that it had been unfairly handicapped in the competition because Northrop had slow-rolled an agreement that would have paved the way for Boeing to buy rocket motors from Orbital ATK.

More