Boeing gets national missile defense contract

WASHINGTON — The United States intends to continue its national missile defense program.

Despite a failure to decide on deployment of the defense system, the Clinton administration has approved a long-term contract that could reach $6 billion for the development of a U.S. missile umbrella. The Defense Department's Ballistic Missile Defense Organization has issued a contract to Boeing for NMD development until toward the end of 2007.

The contract, issued on Friday, did not detail the cost of the contract after 2001. Officials said that would be reviewed by the incoming administration of President-elect George W. Bush.

Officials said the Boeing contract is designed to maintain the pace of the NMD program and prevent interruption of any planned test activities. The initial contract awarded to Boeing in 1998 will expire in April.

Earlier this year, President Bill Clinton said he would leave a decision on NMD deployment to his successor.

"No decision has been made to deploy a NMD system, and this contract award does not change the current NMD system architecture or any previously planned system elements," a Pentagon statement said.

Officials said the contract has a full potential value of $13 billion. They said the Bush administration would have to approve new phases of the contract.