Missile Defense Agency Will Fight Parts Defects in Contracts

U.S. missile defense contractors for the first time will be held financially responsible for poor-quality parts, such as those that have caused failures and delays to multimillion-dollar tests, according to documents and congressional testimony.

A new “Contractor Accountability For Quality” clause will be included in the Missile Defense Agency’s contract for ground-based missile defense development and sustainment. Boeing Co. of Chicago is pitted against Lockheed Martin Corp. of Bethesda, Maryland, for the potential $600 million-a-year contract.