Northrop losses bid to work on $1.7 billion Interceptor Missile

Northrop Grumman Corp. has lost a bid to compete in a winner-take-all contest for initial development and production of a new interceptor missile intended to let U.S. forces hit long-range Iranian missiles. Lockheed Martin Corp., of Bethesda, Maryland, Waltham, Massachusetts-based Raytheon Co., Chicago-based Boeing Co., and Los Angeles-based Northrop Grumman were competing for three Missile Defense Agency early concept contracts. Lockheed Martin, Raytheon and Boeing were selected yesterday to continue in the program, receiving contracts of $43.3 million, $42.7 million and $41.1 million respectively. They are proceeding through December 2013 with work to “define and assess viable and affordable missile” designs, according to the U.S. Defense Department.

Northrop Grumman spokesman Randy Belote said the company “declines to comment on this matter at this time.” Northrop’s Huntsville, Alabama-based Strike Surveillance Systems unit in November announced it was entering the competition.

One company will be selected in two years to proceed with full development and production, Missile Defense Agency spokesman Richard Lehner said today in an e-mail.

“There will be a separate request for proposals issued in 2013 for development, testing and production, and one company will be selected from the bidders on that proposal,” Lehner said. Defense Secretary Robert Gates announced Jan. 6 he would propose more money for “long-range interceptors.” He didn’t identify the program or disclose how much he would propose to spend.

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