Boeing's $5B missile defense win hit by conflict-of-interest allegations

BAE Systems is arguing that through an industry teammate, Boeing has a conflict-of-interest and should not have won a $5 billion contract for systems integration and other services to the Missile Defense Agency.

The contract supports the ground-based midcourse defense element of the U.S' ballistic missile defense system. Boeing won the work in late August and is the incumbent on the current contract that expires in 2023.

In a protest filed Tuesday, BAE is alleging the conflict stems from how an unidentified company on Boeing's team hired a person who worked on an MDA contract that involved oversight of contractors working on the ground-based midcourse defense element.

BAE says the conflict exists because that person would work in areas he or she previously advised and oversaw, thus giving Boeing an unfair advantage..

MDA also didn’t properly assess the alleged conflict and should have determined Boeing as ineligible, BAE argues. The company also claims MDA's cost realism assessment was unequal between the bidders.

Three companies submitted proposals, but so far only BAE has filed a protest. A decision from the Government Accountability Office is expected by Dec. 29.

Whichever company ends up securing the 10-year contract will be responsible for systems engineering and integration, flight, ground and cybersecurity testing, operations and sustainment, and ground-based system support.