NOC Northrop Grumman Corp Holding Co

By Doug Cameron 

Boeing Co. said it wouldn't bid on a giant program to replace the nation's land-based nuclear missiles, a potential opportunity valued at more than $60 billion.

The move would leave Northrop Grumman Corp. as the sole bidder for the first phase of the Ground Based Strategic Deterrent program to provide new ICBMs, with the Pentagon due to make an award in the second half of next year.

Boeing's decision came just hours after Chief Executive Dennis Muilenburg had touted its capabilities as a bidder on Boeing's quarterly earnings call.

The company has privately expressed concerns for years that the huge program would become a "cost shoot out" between contractors that wouldn't give it credit for its technical capabilities.

"After numerous attempts to resolve concerns within the procurement process, Boeing has informed the Air Force that it will not bid Ground Based Strategic Deterrent Engineering and Manufacturing Development under the current acquisition approach," the company said in a statement.

"We've evaluated these issues extensively, and determined that the current acquisition approach does not provide a level playing field for fair competition."

While Boeing succeeded in winning three big Pentagon competitions last year, including an Air Force training jet and a Navy drone, it was the only one of the big defense companies to report a drop in order backlog during the June quarter.

"We are focused on leveraging our work to date on GBSD to deliver this essential national security capability," Mr. Muilenburg said on Wednesday's earnings call.

The Pentagon didn't immediately respond to a request for comment.

(END) Dow Jones Newswires

July 25, 2019 08:17 ET (12:17 GMT)

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