Orbital Picks Up Missile Contract Lost by Coleman Research

The Pentagon has stripped a multimillion-dollar Modified Ballistic Reentry Vehicle No. 2 contract from Coleman Research Corp. Orbital Sciences Corp., Dulles, Va., is expected to take over the US$6 million contract for production of the drone missile. The company has been hit by a number of setbacks in recent months, including cost overruns in some contracts and government-mandated delivery delays in others. In some cases, contract funds had dried up until October, the beginning of the federal government's next fiscal year.

In a layoff notice issued to 45 employees, Coleman cited "lack of contract coverage". No further details were given. Severance pay, outplacement assistance and financial counseling were provided. No further job cuts are expected. Coleman employs almost 340 in Orlando and 550 at sites in Huntsville, Ala., and Fairfax, Va.

L-3 acquired Coleman in January from Thermo-Electron Corp., Boston, in a US$60 million deal. Coleman Research is an agreement with Israel Aircraft Industries to develop the Shavit into a family of LeoLink launchers, at least 51% of the content of the rocket must be produced in the United States for it to qualify as a U.S. launch vehicle.

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