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The U.S. Defense Department on Monday said it’s moving ahead with the Sentinel nuclear warhead program after completing a review of its rising costs. The program is estimated to be about 80% over budget at nearly $141 billion.
“We are fully aware of the costs, but we are also aware of the risks of not modernizing our nuclear forces and not addressing the very real threats we confront,” Bill LaPlante, undersecretary of defense for acquisition and sustainment, said in a statement.
The Sentinel program, overseen by defense contractor Northrop Grumman (NYSE:NOC), is the first major upgrade in more than 60 years to the ground-based component of what is known as the nuclear triad. It will replace the aging Minuteman III intercontinental ballistic missile.
The program includes building a new missile and modernizing 450 silos in five states, along with their launch control centers, three nuclear missile bases and several other testing sites.
The cost overrun triggered what is known as a Nunn-McCurdy breach, or when the cost of a new program rises 25% or more. By law, the undersecretary of defense for acquisition is required to review the program and determine whether to proceed or terminate it.
