East Valley Tribune (Mesa, Arizona) April 19, 2002
Gilbert, Ariz.-Based Aerospace Firm Loses Satellite Contract to TRW
By Ed Taylor
TRW Inc. has beaten out Gilbert-based Spectrum Astro to become the prime contractor for a network of satellites that will track the movements of enemy nuclear missiles.
But Spectrum Astro still expects to be involved in the multi-billion dollar project as a subcontractor to TRW, Spectrum spokesman Mike Greenwood said. "We're still in the game," he said. TRW said Thursday that it won a $ 665 million contract with the Department of Defense to develop the satellite network, known officially as the Space-Based Infrared System Low (SBIRS Low), which could be followed by later contracts to build and deploy the network. SBIRS Low is part of the national missile-defense system being pushed by the Bush Administration to defend the United States against possible nuclear missile attacks by rogue nations.
The U.S. has budgeted $ 3.6 billion for the system, which could total up to 36 satellites, between 2003 and 2007.
The work is expected to strengthen TRW's position as a top space and defense contractor, one of the chief attractions of the company to Northrop Grumman Corp. a Los Angeles-based defense contractor that has launched a $ 12.2 billion hostile takeover bid. Northrop was a member of the Spectrum Astro-led team.
Mike Greenwood said the Gilbert-based company will remain involved in the program as part of a restructuring of SBIRS Low, but he said the scope of Spectrum's work has not yet been announced. He said more information on the program and its affect on Arizona should be available within a few weeks.
He added that Spectrum will continue construction of its "Factory of the Future" at McQueen and Elliot Roads, which is scheduled to be completed in the spring of 2003. He said the factory will be needed for work on the missile-defense program as well as other projects Spectrum is bidding on, including a new NASA weather-satellite system and a space telescope.
SBIRS Low has faced considerable political and development difficulties. Some members of the U.S. Congress tried to kill the program last year after the Pentagon said the work of the satellite network could be more done less expensively by ground-based radar.
The satellites would track enemy missiles after launch and relay their coordinates to U.S. missiles, which would try to intercept and destroy them. "SBIRS Low is a technically ambitious program that, particularly over the past five years, has had persistent problems in achieving its goals," said John Pike, the head of Global Security.Org, a defense-research organization. "There is every reason to expect that it will be a very difficult undertaking."
Development of the system also has been controversial because of concerns missile defense might violate the 1972 Anti-Ballistic Missile treaty, which doesn't allow for the use of space-based radar systems. President George W. Bush last year said the U.S. will abandon the ABM treaty.
TRW, which is also a major auto parts maker, operates air bag plants in Mesa. Its Space & Electronics business is based in Southern California.
Copyright 2002 Knight Ridder/Tribune Business News
Copyright 2002 The Tribune
