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The U.S. Department of Defense announced Monday that it is moving ahead with the Sentinel nuclear warhead program after completing a review of its spiraling costs. The program is estimated to be 80 percent over budget, at nearly $141 billion.
“Are “We are fully aware of the costs, but we are also aware of the risks of not modernizing our nuclear forces and failing to address the very real threats we face,” Bill LaPlante, undersecretary of Defense for Acquisition and Sustainment, said in a statement.
The Sentinel program, overseen by defense contractor Northrop Grumman (New York Stock Exchange:NOC), is the first major upgrade in more than 60 years to the ground component of what is known as the nuclear triad. It will replace the aging Minuteman III intercontinental ballistic missile.
The program includes building a new missile and modernizing 450 silos in five states, along with launch control centers, three nuclear missile bases and several other test sites.
The cost overrun triggered what is known as a Nunn-McCurdy violation, or when the cost of a new program increases by 25 percent or more. By law, the undersecretary of Defense for Acquisition must review the program and determine whether it should be continued or canceled.