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SECRETARY OF THE AIR FORCE PUBLIC AFFAIRS 1690 AIR FORCE Pentagon Washington D.C. 20330-1690

Telephone: (703) 695-0640 Fax: (703) 614-7486 Nov. 6, 1997

NEW ACQUISITION STRATEGY FOR EVOLVED EXPENDABLE LAUNCH VEHICLE

WASHINGTON -- The Air Force announced today a significant change in the overall acquisition approach for the Evolved Expendable Launch Vehicle Program that will permit the award of two development contracts for the EELV.

Acting Under Secretary of Defense for Acquisition and Technology, Noel Longuemare, approved an Air Force plan intended to introduce competition across the life of the program, strengthen the U.S. space launch industry, encourage greater contractor investment, and reduce the Air Force's overall development costs. This decision is a change from the existing strategy which was to award only one EELV development contract.

"This represents a significant step in implementing the President's 1994 National Space Transportation Policy, and it supports the goals and objectives of the 1996 National Space Policy," said Col. Richard McKinney, EELV System Program director.

Lockheed Martin Corporation, Lockheed Martin Astronautics, Littleton, Colo., and the Boeing Company, Boeing Expendable Launch Systems, Huntington Beach, Calif., currently have EELV contracts to complete the definition phase of the program prior to award of the development contracts.

The new approach resulted from a six-month Air Force, Department of Transportation, and industry review which confirmed the commercial launch market is growing much faster than originally forecasted three years ago. During the next decade, projected demand for commercial space launch will exceed government launch requirements.

Pentagon and Air Force officials see this as a opportunity to partner with industry, and develop a national launch system supporting both government and commercial requirements. This will reduce the Government's overall launch costs by more than 25 percent. This also supports the Air Force goal of saving between $5 billion and $10 billion in program life-cycle costs through the year 2020.

The strategy change also signals the further implementation of acquisition reform initiatives. By partnering with industry, the Air Force will ensure the EELV contractors have maximum flexibility to implement best commercial business practices in both system development and payload launches.

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NOTE: For additional information, please contact Ms Gloria Cales, SAF/PAM, (703) 693-9086.

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