WASHINGTON (AP) - Boeing Co. will have to compete for work on part of the Army's modernization plan following the service's decision to break up the giant contract that the company managed.

Boeing was the lead contractor on the $160 billion Future Combat Systems program, overseeing the development of a wide range of weapons from unmanned drones to a giant cannon. SAIC Inc. also had a smaller lead role on the program that included work by most of the nation's biggest defense contractors.

But the Pentagon formally dissolved Future Combat Systems late last month amid growing concerns about the program's cost and capabilities.

The Army now plans to equip all of its brigade combat teams with the program's technology instead of focusing on just a handful. It also will develop a new armored vehicle because previous models were scrapped after being deemed unprepared for threats like road side bombs.

Lt. Gen. Ross Thompson, the Army's principal deputy on acquisition, said Wednesday that the Army is negotiating termination fees with Boeing over canceling work on the ground vehicles, an $87 billion project that was a major chunk of Future Combat Systems. The fees likely will be in the "hundreds of millions of dollars" range, Thompson said.

Chicago-based Boeing will be the lead contractor for work outfitting three of the first seven brigades that will receive the sensors, drones and other equipment that used to be part of Future Combat Systems, Thompson said.

But work for the other four will be competitively bid.

"We will negotiate with Boeing on what their role and relationship is beyond those first three," Thompson said.

In a joint statement, Boeing and San Diego-based SAIC noted that their contract with the Army has not been canceled. The companies said they remain "committed to working with the Army to implement its brigade combat team modernization strategy."