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Lockheed, TRW get $2.7 billion satellite order
Reuters, 11.18.01, 4:06 PM ET
forbes.com
By Jim Wolf
WASHINGTON (Reuters) - Lockheed Martin Corp. and TRW Inc. have been awarded a $2.7 billion contract to develop and deliver the U.S. military's next-generation communications satellite system, the Air Force said.
Boeing Co., which had been part of the system's design team, said over the weekend it had pulled out as a TRW subcontractor because of what it described as an unacceptable risk-reward ratio.
"Over the last several months, the Boeing share of the program has continued to shrink, while the technical and financial risks we were being asked to take ... were disproportionate to our role," a statement said.
"Because of these developments, we decided we could not continue our relationship as a subcontractor to TRW," added Boeing's Space and Communications Group in Seal Beach, California.
In awarding the contract after the close of markets Friday, the Air Force said the Advanced Extremely High Frequency satellite system would have 10 times the capacity of the Milstar system it is designed to replace.
The new system will employ the world's most complex and sophisticated satellites, designed to withstand jamming attempts.
Boeing, Lockheed and TRW teamed up on the Milstar program, which suffered a setback when one of its four satellites was launched into an operationally useless orbit in 1999. |
