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Tue, Jun 10, 2003

Corporate Spying: a Double-Edged Sword

Boeing Apologizes for Cheating to Win $1.88 Billion contract

Boeing Chairman, Phil Condit publicly apologized Monday for activity several years ago that may have amounted to corporate spying by Boeing, on Lockheed Martin. The US Department of Justice has been investigating some possible skullduggery in the case of bidding on a nearly-$2 billion contract; Condit's apology was published in several major US papers Monday.

"It has become clear that some of our employees did not behave properly during the EELV competition," he wrote.

The contract involved the EELV, or Evolved Expendable Launch Vehicle. At issue is whether Boeing employees may have had an edge in the bidding -- competitors' proprietary information.

Condit continued, "We understand that for competition to work it must be conducted fairly, properly and within the rules established for its engagement. So the question raised about Boeing's commitment to the values of integrity and fairness cannot go unanswered."

Stuff still happens. Mr. Condit explained, "Despite all of the guidance and training we give every one of our employees, there have been mistakes. Whenever these events occur, we try to deal with them directly, quickly and effectively. We will not tolerate unethical behavior."

Boeing won the contract.

Boeing fired two of the employees, and disciplined a third. The extent of the DoJ and the Boeing investigations was not discussed.

FMI: www.boeing.com

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