Pentagon will push forward with Sentinel nuclear missile amid value overruns (NYSE:NOC)

The U.S. Protection Division on Monday stated it’s transferring forward with the Sentinel nuclear warhead program after finishing a assessment of its rising prices. This system is estimated to be about 80% over funds at almost $141 billion.

“We’re absolutely conscious of the prices, however we’re additionally conscious of the dangers of not modernizing our nuclear forces and never addressing the very actual threats we confront,” Invoice LaPlante, undersecretary of protection for acquisition and sustainment, stated in an announcement.

The Sentinel program, overseen by protection contractor Northrop Grumman (NYSE:NOC), is the primary main improve in additional than 60 years to the ground-based element of what’s generally known as the nuclear triad. It is going to exchange the growing older Minuteman III intercontinental ballistic missile.

This system consists of constructing a brand new missile and modernizing 450 silos in 5 states, together with their launch management facilities, three nuclear missile bases and a number of other different testing websites.

The fee overrun triggered what is named a Nunn-McCurdy breach, or when the price of a brand new program rises 25% or extra. By regulation, the undersecretary of protection for acquisition is required to assessment this system and decide whether or not to proceed or terminate it.