Northrop Grumman wins USAF bomber contract

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WASHINGTON, D.C.  –  The Air Force has announced the winner of a high-stakes industry competition to build a next-generation long-range strike bomber to replace the B-52.

Northrop Grumman Corporation beat out a team made up of Boeing and Lockheed Martin, the U.S. Defense Department announced Tuesday. The deal has an estimated value of up to $80 billion. The Air Force is expected to buy 100 stealth bombers for $550 million each.

The new plane should be ready by the mid-2020s.

Boeing and Lockheed Martin released the following statement after the decision was announced:

The Boeing and Lockheed Martin team is disappointed by today’s announcement. We will have further discussions with our customer before determining our next steps. We are interested in knowing how the competition was scored in terms of price and risk, as we believe that the combination of Boeing and Lockheed Martin offers unparalleled experience, capability and resources for this critically important recapitalization program.

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