By Doug Cameron 

The Pentagon awarded contracts to Boeing Co. and Northrop Grumman Corp. to advance a refresh of the nation's land-based intercontinental ballistic nuclear missiles estimated to cost around $85 billion.

The two companies are competing for the Pentagon's Ground-Based Strategic Deterrent program, which would replace aging Minuteman missiles, a step toward what will be one of the largest defense deals of the decade.

Lockheed Martin Corp. also bid and said it was disappointed at the decision, but didn't comment on whether it would appeal.

The awards are part of a three-pronged $500 billion refresh of the U.S. nuclear arsenal, which includes a long-range bomber being built by Northrop Grumman and new nuclear submarines now under construction by General Dynamics Corp.

The Pentagon is expected to select a single company to lead the modernization of the land-based missile armory after studying the next round of development.

Write to Doug Cameron at doug.cameron@wsj.com

 

(END) Dow Jones Newswires

August 21, 2017 18:07 ET (22:07 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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