U.S. AIR FORCE TO REBID GPS CONTRACT

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The U. S. Air Force has decided to re-bid their 1997 contract for global positioning satellites because of a need to update the satellites because new technologies have emerged since Boeing was hired to do the work. New technologies would include the capability to override enemy jamming signals. In 1997, the USAF had agreed to buy six satellites from Boeing with options for another 27. Boeing will be allowed to build as many as 12 of those satellites, but the remainder will be put out for competitive bidding although the exact number that will be built is still under consideration. In the short term the proposal would substantially increase Boeing's revenue from the GPS program, being worth about US$1 billion. Boeing is expected to bid on the project again, along with Lockheed Martin, Orbital Sciences, Loral Space & Communications, TRW and Spectrum Astro. The USAF's decision may have been prompted not by technology, but by a desire to shore up Lockheed Martin's satellite business.

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March 13, 2000

Andrews Space & Technology