Hicks approves NGI to proceed; contract award imminent for $2 billion, three-year initial design phase

By Jason Sherman  / March 19, 2021

Deputy Defense Secretary Kathleen Hicks has approved the Next Generation Interceptor project to proceed, clearing the way for the Missile Defense Agency to award a pair of contracts as well as seek $1.6 billion in fiscal year 2022 and FY-23 for the new Ground-based Midcourse Defense guided missile, according to a source familiar with the decision.

The development comes after the new Biden team at the Pentagon took about a month to closely review the NGI program.

While the delay prompted speculation that NGI could be on the chopping block during the ongoing FY-22 budget review, the additional time was needed to conduct an additional technical review by the incoming administration. The review is part of a commitment to managing risk and major programs including better understanding of requirements and sequencing for integrated missile and air defense programs, according to the source.

This development sets the stage for a field of three contestants -- Lockheed Martin, Boeing, and a Northrop Grumman-Raytheon team -- to be narrowed to two for the initial design phase for a new GMD interceptor.

With $450 million appropriated for NGI in FY-21, work on the initial design phase will reach $2 billion over three years if Congress supports DOD's new plan.

MDA launched the NGI program to develop a new long-range, guided missile to protect the United States against anticipated North Korean and Iranian ballistic missile threats beginning in 2030. The project is a follow-on to the Redesigned Kill Vehicle effort, terminated in August 2019, that was a centerpiece of MDA plans to modernize the GMD system.

MDA outlined specific performance requirements but not a specific design and provided bidders incentives to accelerate development and fielding in hopes of delivering a new interceptor before 2028.

The Pentagon anticipates buying 20 NGIs to deploy in new silos in Alaska, recently completed and now empty, that were originally built for interceptors armed with the now-terminated RKV warhead.