Here's another article about how Boeing's loss could open the door for LMT. I thought the 2nd to the last paragraph was interesting (bold is mine):
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Boeing loses big chunk of $1.3 bln satellite deal
Last Update: 5:15 PM ET Feb 19, 2000
NewsWatch
LOS ANGELES (AP) -- Boeing lost options to complete a $1.3 billion project to build 33 global positioning satellites for the Air Force in a decision that could cost the company hundreds of millions of dollars.
Boeing (BA: news, msgs) will be allowed to build as many as 12 of the satellites, but others will be put out for competitive bidding, the Air Force said in a statement Friday.
Under the terms of a 1997 deal, the Air Force agreed to buy six satellites from Boeing and held options for another 27. The satellite system is used for navigation by military aircraft, ships, land forces and smart weapons.
The Air Force decided to rebid the contract because of a need to update the satellites with new technologies that have emerged since Boeing was hired to do the work, according to a statement released through the Space and Missile Systems Center at Los Angeles Air Force Base.
The Air Force was pleased with Boeing's work to date.
"Boeing's performance has been exceptional,' the statement said. The company is expected to bid on the project again, along with Lockheed Martin (LMT: news, msgs) and Loral Space & Communications (LOR: news, msgs).
An analyst said the Air Force's decision may have been prompted not by technology, but by a desire to shore up Lockheed Martin's satellite business.
Boeing shares closed down 1 1/2 Friday at 36. Lockheed traded down 9/16 at 17 7/16. Loral dropped 7/16 to 15 3/8.
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Link: cbs.marketwatch.com
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Regards - Dale |
