Boeing, Lockheed Martin join to seek latest Pentagon bomber contract

SEATTLE – When the Pentagon this spring announces who will design and build a major new stealth bomber for the Air Force, the decision will determine Boeing’s future in the combat-aircraft business.

The choice could also reshape the military-industrial base. Top aerospace analyst Richard Aboulafia said that whatever the outcome, it could precipitate an aggressive move by Boeing, the No. 2 U.S. defense contractor, to acquire the aircraft unit of No. 3 defense player Northrop Grumman.

Boeing has teamed with Lockheed Martin, the top defense contractor, in bidding against Northrop to build up to 100 new-generation long-range strike bombers (LRS-B) that will replace the Air Force’s B-1 and B-52 bombers.

The currently projected cost, not counting classified spending, is $90 billion, or $900 million per airplane.

“If Boeing loses, it won’t be building combat aircraft after 2018 unless it buys Northrop’s aircraft unit,” said Aboulafia, a Teal Group analyst.

“If Boeing wins, Northrop will not be a combat-aircraft prime, and its investors may decide the company is more valuable broken up – in which case Boeing would be the likely buyer for the aircraft unit anyway.”

Besides aerospace, Northrop has distinct and substantial businesses in electronics, information systems and technical services such as supply-chain management.

Details of the government’s requirements for the plane remain top secret. But Pentagon officials have said the aircraft must be able to carry nuclear bombs, and may be designed to fly unmanned when dropping conventional bombs.

Should the Boeing/Lockheed team win, it’s likely Lockheed will do the design and Boeing will build it, Aboulafia said in an interview.

Boeing would probably build the planes in St. Louis, with significant pieces subcontracted around the nation.