Raytheon Co.'s project to develop a new interceptor warhead for America's ground-based missile defense system is estimated to increase in cost by almost $600 million because of "major design concerns" since the contract was awarded, according to congressional auditors.
The company received a $1 billion contract in May 2017 for the project, which is unsuccessful so far and at least two years behind schedule, the Government Accountability Office said in a report issued Thursday. It is the watchdog agency's most detailed assessment of problems for the improved warhead, which it said is supposed to respond to "advancements in the North Korean missile threat."
The program has "encountered design, systems engineering, quality assurance, and manufacturing issues," the GAO said. It said Raytheon is using commercial off-the-shelf hardware and reused components from navy missile interceptors that the GAO previously raised concerns about.