The U.S. Air Force has received the go-ahead from Pentagon acquisition chief Frank Kendall to proceed with the awarding of its Long Range Strike Bomber contract, Bloomberg reported Tuesday.
Anthony Cappacio and Julie Johnsson write USAF could name Northrop Grumman (NYSE: NOC) or a team of Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT) as the LRS-B builder after financial markets close on Tuesday.
The contract is estimated to be worth around $80 billion and will use a fixed-price-incentive fee structure for the first 20 of the military branch’s 100 planned aircraft purchases, the publication reports.
LRS-B will be designed to have a strike technology, targeting sensors, jamming equipment and a communications system that can survive nuclear electromagnetic pulse.
The Air Force aims to start operational use of the LRS-B platform in the mid-2020s as a replacement for its B-1 and B-52 bomber fleets.