Northrop Grumman wins $13.3 billion missile replacement contract

(Reuters) – Defense contractor Northrop Grumman Corp said on Tuesday it was awarded a $13.3 billion contract by the U.S. Air Force to modernize the country’s intercontinental ballistic missile system.

The contract comes as the U.S. military embarks on a costly modernization of its aging atomic weapons.

The contract will span eight and a half years and include weapon system design and nuclear certification. The company will deliver a fully-integrated weapon system by 2029.

“The increased accuracy, extended range and improved reliability will provide the United States a broader array of options to address unforeseen contingencies,” said General Tim Ray, commander of Air Force Global Strike Command. (

Boeing Co in December decided not to compete as a prime contractor to replace the Pentagon’s U.S.-based missile system, paving the way for Northrop Grumman to win the contract.


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