Report: Boeing got $20B from U.S. DoD despite shoddy missile system

|About: The Boeing Company (BA)|By:, SA News Editor

The U.S. Defense Department spent $40B over a decade on a ground-based domestic missile defense system that repeatedly has failed the most rudimentary tests of its effectiveness in shooting enemy nuclear missiles out of the sky, and Boeing (BA -0.3%) received $20B for developing and managing the costly system without ever being penalized for the disappointing performance, The Fiscal Times reports.

The Ground-based Midcourse Defense system was designed to launch missiles from underground silos to counter potential nuclear attacks by North Korea, Iran and other hostile countries, but six of 11 tests during 2002-15 missed destroying mock enemy warheads, according to the report.

A recent L.A. Times report said the DoD showered Boeing with nearly $2B in performance bonuses throughout the testing period despite the system’s disappointing performance, and that the criteria for the bonuses “were changed at some point to de-emphasize the importance of test results that demonstrate the system’s ability to intercept and destroy incoming warheads.”

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