{"id":41642,"date":"2019-07-25T13:27:09","date_gmt":"2019-07-25T13:27:09","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2019\/07\/25\/boeing-drops-from-next-generation-icbm-competition\/"},"modified":"2026-08-07T23:15:40","modified_gmt":"2026-08-07T23:15:40","slug":"boeing-drops-from-next-generation-icbm-competition","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/space\/2019\/07\/25\/boeing-drops-from-next-generation-icbm-competition\/","title":{"rendered":"Boeing drops from next-generation ICBM competition"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 Boeing has announced its withdrawal from the $85 billion <a href=\"https:\/\/www.defensenews.com\/smr\/2018\/11\/02\/heres-when-all-of-americas-new-nuclear-warhead-designs-will-be-active-and-how-much-theyll-cost\/\" target=_blank>Ground Based Strategic Deterrent<\/a> competition, potentially leaving Northrop Grumman as the <a href=\"https:\/\/www.defensenews.com\/smr\/2018\/11\/02\/heres-when-all-of-americas-new-nuclear-warhead-designs-will-be-active-and-how-much-theyll-cost\/\" target=_blank>only contender vying to replace<\/a> the Air Force\u2019s Minuteman III intercontinental ballistic missiles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAfter numerous attempts to resolve concerns within the procurement process, Boeing has informed the Air Force that it will not bid Ground Based Strategic Deterrent (GBSD) Engineering and Manufacturing Development (EMD) under the current acquisition approach,\u201d reads a Boeing statement. \u201cWe\u2019ve evaluated these issues extensively, and determined that the current acquisition approach does not provide a level playing field for fair competition.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/pentagon\/2019\/07\/17\/air-forces-next-gen-icbm-program-takes-another-step-foward\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"199\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/2890003.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Air Force\u2019s next-gen ICBM program takes another step forward<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Will Boeing or Northrop Grumman nab the ultimate prize?<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Boeing Defense CEO Leanne Caret detailed the company\u2019s issues in a July 23 letter to Air Force acquisition executive Will Roper, which was obtained by Defense News and other outlets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThroughout the procurement process, Boeing has been transparent with the Air Force about its concerns with the competition,\u201d she wrote. \u201cThe final RFP released on July 16 made only modest changes to the draft RFPs that had been previously released. As relevant to the concerns Boeing had raised, the final RFP extended the proposal submission deadline by 60 days, from 90 days after the RFP\u2019s issuance to 150 days, and allowed offerors to submit \u2018an alternative proposal in addition to their principal proposal,\u2019 that could include \u2018a single, combined proposal\u2019 from both competitors.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Caret said that those changes did not address Boeing\u2019s primary concern: that Northrop Grumman would have an unfair advantage in the competition due to its recent acquisition of solid rocket motor manufacturer Orbital ATK, now known as Northrop Grumman Innovation Systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Neither Boeing nor Northrop announced selections for suppliers. NGIS is one of two U.S. manufacturers of solid rocket motors, alongside Aerojet Rocketdyne, but a Boeing source told Defense News that the company does not see Aerojet as a viable option as a sole supplier for the motors. Aerojet\u2019s ultimate participation in the contract may depend on whether the Air Force hands down requirements to include both suppliers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Caret, Northrop only recently \u2014 as of July 3 \u2014 signed off on an agreement that would firewall Boeing\u2019s proprietary information from Northrop\u2019s own GBSD team as Boeing negotiates with NGIS for solid rocket motors. Even though an agreement has now been reached, Caret contends that Boeing does not have enough time to negotiate a competitive price for the motors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Caret said the current acquisition approach gives Northrop \u201cinherently unfair cost, resource and integration advantages related to SRMs,\u201d adding: \u201cAs I said in my July 8 letter, we lack confidence in the fairness of any procurement that does not correct this basic imbalance between competitors.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even the Air Force\u2019s accommodation that would allow Northrop and Boeing to submit a joint bid \u201cis not a workable solution to these issues,\u201d she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBecause the final RFP does not address Northrop\u2019s inherent advantage as a result of its control of SRMs, Northrop retains the ability to compete on unequal terms against either a Boeing or a joint \u2018alternative\u2019 proposal \u2014 and as a result, would not be incentivized to devote the significant resources required to develop such a proposal,\u201d Caret said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, Caret said it is \u201cnot realistic\u201d to expect that Boeing and Northrop could develop a competitive joint bid in the five months before proposals are due, given that both companies have been working on their separate proposals for more than two years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An Air Force spokeswoman declined to comment on the news, as the competition is currently in source selection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/insidedefense.com\/daily-news\/boeing-confirms-it-wont-bid-gbsd-program-structured\" target=\"_blank\">Inside Defense<\/a> broke the news of Boeing\u2019s departure from the competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing\u2019s decision comes a week after the Air Force released its final request for proposals on July 16. A contract for the engineering, manufacturing and development phase is expected to be awarded by the end of 2020.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lockheed Martin had previously competed for the contract, <a href=\"https:\/\/www.navytimes.com\/air\/2017\/08\/21\/boeing-northrop-move-forward-on-next-gen-icbm-program-lockheed-out\/\" target=\"_blank\">but was ousted in August 2017<\/a>, when the service awarded technology maturation and risk reduction contacts to Boeing and Northrop.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s unclear how Boeing\u2019s departure will affect the ultimate price of the GBSD program.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/space\/2019\/04\/17\/the-cost-of-new-intercontinental-ballistic-missiles-is-going-up-heres-why-the-air-force-isnt-concerned\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"201\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/a11-minuteman-III-launch-still-3672046.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">The cost of a new ICBM is going up. Here\u2019s why the US Air Force isn\u2019t concerned.<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">But will Congress be satisfied with the explanation?<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">In April, Gen. Timothy Ray, head of Air Force Global Strike Command, said he was counting on competition between Northrop and Boeing to help offset a near-term bump in cost expected as the Air Force makes investments in current infrastructure that will be reused for the GBSD system. Ultimately, that competition would help drive \u201cbillions\u201d of dollars in savings over the lifespan of he weapon, he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBetween the acquisition and the deal that we have from a competitive environment, from our ability to drive sustainment, the value proposition that I\u2019m looking at is a two-thirds reduction in the number of times we have to go and open the site. There\u2019s a two-thirds reduction in the number of times we have to go and put convoys on the road.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It would be unusual for the Air Force to move forward with this program with only one competitor, Byron Callan, an analyst with Capital Alpha Partners, noted in an email.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOne option would be for the Air Force to re-write the RFP to address some of Boeing\u2019s concerns, which could delay the program,\u201d he wrote. \u201cThe RFP had been seen by some analysts as favoring Northrop Grumman because the initial portion was cost-plus, but Boeing\u2019s concerns suggest it\u2019s worried about a strategic bid by Northrop Grumman.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During an earnings call on Wednesday, Boeing CEO Dennis Muilenburg referred to the GBSD program a single time \u2014 to say that the company would leverage its development work on GBSD for future programs such as NASA Commercial Crew effort and next-generation space launch.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This move leaves Northrop Grumman as the sole bidder in the Ground Based Strategic Deterrent program.<\/p>\n","protected":false},"author":7,"featured_media":35341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":23,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"4":{"categories":["your-air-force","news","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"your-air-force"}}},"categories":[160,29,162,12,163,36,23,99],"tags":[],"coauthors":[3384],"class_list":["post-41642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-digital-show-dailies","category-digital-show-daily","category-industry","category-military-space-report","category-newsletters","category-space","category-smd"],"acf":{"subheadline":"","legacy_arc_id":"2G47EKWZXFGQRB4HSEJ6WGZGLU","arc_canonical_url":"\/space\/2019\/07\/25\/boeing-drops-from-next-generation-icbm-competition\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Boeing drops from next-generation ICBM competition - Defense News<\/title>\n<meta name=\"description\" content=\"This move leaves Northrop Grumman as the sole bidder in the Ground Based Strategic Deterrent program.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/one.sightlinemg.com\/defensenews\/space\/2019\/07\/25\/boeing-drops-from-next-generation-icbm-competition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Boeing drops from next-generation ICBM competition\" \/>\n<meta property=\"og:description\" content=\"This move leaves Northrop Grumman as the sole bidder in the Ground Based Strategic Deterrent program.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/one.sightlinemg.com\/defensenews\/space\/2019\/07\/25\/boeing-drops-from-next-generation-icbm-competition\/\" \/>\n<meta property=\"og:site_name\" content=\"Defense News\" \/>\n<meta property=\"article:published_time\" content=\"2019-07-25T13:27:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-07T23:15:40+00:00\" \/>\n<meta name=\"author\" content=\"Valerie Insinna\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Valerie Insinna\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"Article\",\n\t            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