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U.S. Plans II: Navy Saves Little Money by Canceling Navy Area MD Program Although the U.S. Defense Department canceled the Navy Area missile defense program in December, the department will still spend millions of dollars to terminate the program’s contract, study other options and replace the system, Defense Week reported last week (see GSN, Jan. 18). Although the Pentagon will save $100 million this year by killing the program, the costs of ending the program’s contract and studying options to replace it will total almost $100 million, according to a senior defense official. Defense must meet a requirement to develop a system that can launch interceptors from ships to hit short-range missiles, which the canceled program was designed to do, so it must choose a replacement program. Other canceled or delayed programs also carry significant costs. The Space-Based Infrared System-Low, a system of satellites to track missiles, has been delayed for two years, and that delay will add costs to the program, Defense Week reported (see GSN, Feb. 5). SBIRS-Low will continue to face a lack of competition among contractors after the two years, said a defense official (Donnelly/Roosevelt, Defense Week, Feb. 19).
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