Lockheed, Raytheon land separate $900M contracts for air-based nuclear missile work

The U.S. Air Force is doling out separate $900 million contracts to Lockheed Martin Corp. (NYSE: LMT) and Raytheon Co. (NYSE: RTN) to work on a replacement missile for the air-based leg of the U.S.’s nuclear triad.

The contracts allow both companies to continue separate development of the cruise-missile replacement as part of the military’s efforts to modernize its nuclear arsenal. The Air Force this week dropped Lockheed from work to upgrade its ground-based nuclear missiles.

The Air Force will ultimately select either Lockheed or Raytheon for the final manufacturing of the air-based missiles, called the Long Range Stand Off missile.

The Air Force ultimately plans to buy about 1,000 of the missiles for nuclear armament, testing or to keep as spares at a cost of about $10 billion, according to Reuters.

Waltham, Massachusetts-based Raytheon has 4,000 employees in Greater Washington. Its missile defense branch is headquartered in Tucson, Arizona.

Bethesda-based Lockheed’s missile…

Read the full story from the Washington Business Journal.

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