Army takes $35 million hit on joint common missile.

• Author: Erwin, Sandra I.
• Position: Up Front - Brief Article

As a result of funding cuts, the Army is unable to bring a second industry competitor into one of its largest missile programs.

The Army selected a single contractor to build the multi-service "joint common missile," but wanted to engage two suppliers to compete in the development of the seeker--a complex tri-mode system that will combine laser, radar and infrared guidance into a single device.

Lockheed Martin Missiles and Fire Control won a $53 million contract in May to begin developing the joint common missile. One of the two losing competitors, Raytheon and Boeing, potentially could have been selected as a back-up contractor just for the seeker work. That will not be possible, at least in the foreseeable future, because the Army has no funds to support a second contractor, said Brig. Gen. Mike Cannon, Army program executive officer for tactical missiles.

In the fiscal year 2005 spending bill for the Defense Department, Congress cut the $35 million the Army had sought for a back-up contractor, Cannon said at a recent industry...