Rocky Mountain News July 23, 2004
Feds might dump one rocket builder
Military launches would go to either Boeing or Lockheed if change made
By Roger Fillion,
Uncle Sam is mulling whether it still needs two companies - Lockheed Martin Corp. and Boeing Co. - to build rockets to put government satellites into orbit.
The idea: Cut costs. But the policy change, which isn't assured, could be huge for Lockheed's rocket operations in the Denver area. It could force Lockheed out of the launch business if the government taps Boeing.
"Whoever has the government for an anchor customer, it would be hard to compete against," said John Pike, director of GlobalSecurity.org, a defense policy group.
Lockheed's Space Systems division employs 4,500 in the metro area, with most in Jefferson County. About 900 employees work on the Atlas rocket program used by the Air Force.
Lockheed and Boeing are the Air Force's two launch vehicle suppliers. The Air Force, at Congress' demand, recently commissioned a panel to study if two contractors are needed. A recommendation is expected by year's end.
The White House also is weighing a single launch provider, Thursday's Wall Street Journal reported. It said White House budget officials are looking for ways to pare down to one supplier by 2009.
But the plan is expected to face opposition from the Air Force - and Lockheed Martin and Boeing, both of which have suffered from a commercial launch market slump.
The military launches deploy weather, spy, communications and navigational satellites.
"We still believe we need two proven launch providers to ensure we have the capabilities to launch these vital national security assets," said Air Force spokesman Col. Art Haubold.
In a statement, Lockheed agreed, saying the current Air Force policy of maintaining two launch providers "has served and will continue to serve our nation well."
The Air Force is projected to have about 50 launches through 2011. It is expected to put about 20 of those out for bid in 2004.
© Copyright 2004, Rocky Mountain News
