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Report: MDA to Include ‘Quality’ Parts Clause in Upcoming Contract

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The Missile Defense Agency for the first time will include a “Contractor Accountability for Quality” clause in an upcoming contract for ground-based missile defense development and sustainment, Bloomberg reports.

The MDA will have the authority to adjust performance fees under this new provision, which covers parts for missiles, radars and sensors that make up the U.S. missile defense system.

The new provision is intended to ensure tests are properly conducted and establish base requirements for testing. It also is meant to not be too heavy-handed on contractors if new technology does not work, as the MDA told Bloomberg the agency expects that to happen “from time to time.”

Boeing is teaming with Raytheon in competing for the potential $600 billion award, up against a team of Northrop Grumman and Lockheed Martin. Bloomberg reported the contract could be awarded either Friday or next week.

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