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Northrop to get $2.5 bln more for missile defense
HUNTSVILLE, Alabama, Aug 16 (Reuters) - The U.S. Missile Defense Agency plans to award Northrop Grumman Corp. <NOC.N> two contracts totalling $2.5 billion over the next 14 months for the kinetic energy interceptor, a prototype high-speed rocket designed to knock out enemy missiles in their boost phase, the Pentagon's program director said Wednesday. The first, to be awarded this fall and totalling about $1.5 billion, covers costs of restructuring and stretching out the project, Carlton Brewer, the director, told reporters at an annual missile-defense conference here. The second, to be awarded by Sept. 30, 2007, would total about $1 billion and add a capability to shoot down targets in the middle of their flight paths, he said. The Missile Defense Agency plans to demonstrate the booster capabilities of the kinetic energy interceptor, or KEI, in the fourth quarter of fiscal 2008 in a test that may decide whether to continue or kill the project, an add-on to the fledgling U.S. missile defense shield. The project backs up Boeing Co. <BA.N>'s Airborne Laser, a directed energy system aboard a modified 747 airliner also aimed at thwarting ballistic missiles shortly after they are launched, their most vulnerable point. The Airborne Laser is likewise scheduled for a 2008 intercept test that will help decide whether it survives. Pamela Rogers, a Missile Defense Agency spokeswoman, said the $2.5 billion increase to the Northrop Grumman contract was being made with funds already in the KEI budget and was "a previously programmed increase to the existing KEI contract." Northrop Grumman Mission Systems of Reston, Va., is the prime contractor for the KEI effort under a six-year, $4.5 billion deal awarded in December 2003. Brewer contrasted it with the ground-based mid-course defense (GMD), developed by Boeing, that forms the backbone of the U.S. missile shield and requires fixed silos for anti-missile missiles. "Think of it as putting GMD on wheels," he said of the project. Brewer said he was uncertain what would happen to the projected new Northrop Grumman contracts if the project were cancelled afte the planned 2008 booster demonstration. A KEI battery consists of a mobile launcher, an interceptor and a battle management and communication system housed in a transportable trailer. It would be deployable anywhere in the world using U.S. military aircraft. Initially a land-based defensive capability, KEI is being built for swift transition to sea-based platforms. Brewer estimated the cost of a KEI battery at $500 million. He declined to say how many might be required if the program goes ahead. The Pentagon's current goal is to deploy the Kinetic Energy Interceptor by the end of 2015. President Bush asked Congress for $406 million for the project in the current fiscal year, but both the Senate and House of Representatives Armed Services committees have proposed trimming it. Their differences must be ironed out in a House-Senate conference. |
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