The Pentagon and its European partners are reviewing the multibillion-dollar medium extended air defence system (MEADS), an air and missile defence system, amidst the drive to cut costs.
The $16.5bn missile programme has been facing review since its inception in 1995 with serious cost cutting and delays, according to the Wall Street Journal.
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According to the terms of the contract, funding would be majorly granted by the US with a share of 58%, with Germany and Italy sharing 25% and 17%, respectively.
The prime contractor for the system, MEADS International, is a multinational joint venture that includes Lockheed and MBDA, a European manufacturer of missiles and missile systems.
The missile, intended to replace the Patriot missile defence system, can protect troops from shorter-range ballistic missiles, low-flying cruise missiles and enemy aircraft.
The project passed a critical design review by a tri-national government team that assessed technical progress in August 2010.
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By GlobalDataThe army has plans to keep the Patriot in service until 2030 as the first MEADS unit is not expected to be equipped until later this decade.
