Defense contractors involved in the now-canceled U.S. Navy Area Theater Missile Defense Plan will share $300 million in termination fees, a Defense Department official said Tuesday (see GSN, Dec. 17).

The fees would be split among Raytheon, United Defense, Orbital Science Corp. and L-3 Communications, the official said.  Lockheed Martin, which developed the Aegis radar system and was also involved in the missile defense project, would probably not receive a portion of the fees since the radar system is in use, the official said.

Raytheon Executive Vice President Tom Culligan said the Navy had been satisfied with the process of the Area Theater Missile Defense program and had paid Raytheon 80 percent of a milestone award it was eligible to receive last month.

“The Navy said we were moving to a schedule, and we thought we were moving to a schedule, and that’s why we were so surprised by the decision to cancel,” Culligan said.  “Why this happened I don’t know” (Ross Kerber, Boston Globe, Dec. 19).

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