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Thu, Dec 02, 2004

Boeing, Lockheed Team Up On Rocket Deal?

Fat Chance.

The Air Force wants arch rivals Boeing and Lockheed to play in the same sandbox and play nicely. The USAF has asked the two aerospace giants to cooperate on launching classified payloads, according to a report from Reuters.

In your dreams, say sources within the launch industry.

The two companies are locked in legal combat over the EELV document debacle. Two Boeing employees have been indicted on charges of stealing Lockheed documents pertaining to the EELV launch contracts. Now, Lockheed lawyers want a word with former Boeing Vice President Darleen Druyun to see what she knows about the EELV contract awards that both companies bid on and Boeing won. Druyun is the former Air Force negotiator now serving time for illegally influencing the KC-135 replacement deal in Boeing's favor.To say there's bad blood between the two would be a rather quaint misstatement.

"Boeing as a company is really not interested in teaming with Lockheed on this," said Boeing spokesman Dan Beck in an interview with Reuters. "But ultimately, it's going to be up to the Air Force to make that decision."

Lockheed's spokesman said the company would support whichever Air Force decision allows both it and Boeing to continue providing launch services. Indeed, both companies now provide those services to the Air Force -- but Boeing got the lion's share. But, in the wake of a scandal involving those two Boeing workers accused of stealing Lockheed documents to get the EELV contracts, the Air Force took away about $1 billion in Boeing launches and suspended three Boeing divisions.

Those suspensions remain in effect today, more than a year after it was instituted.

Still, the Air Force is cash-strapped and wants the two defense contracting giants to at least consider combining services. There simply might not be enough money in the pot -- or enough of a mandate in Washington -- for the USAF to continue using both companies as launch providers.

Can these two bickering behemoths work together? In the words of one launch industry source who didn't want to give a name to Reuters -- "You'd have to be an idiot to agree to that kind of teaming under the current circumstances."

FMI: www.boeing.com, www.lockheedmartin.com, www.af.mil

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