Lockheed deal foreshadows EELV changes

Here's a sneak preview of a story planned for tomorrow's hard-copy paper, based on a late-breaking announcement from the U.S. Air Force tonight. Flame Trench readers get an early look.

The U.S. Air Force is changing the way it does business with rocket makers Lockheed Martin and The Boeing Co. with an eye toward keeping the launchers of both companies flying.

Late Friday, after financial markets closed, the Air Force gave Lockheed Martin a contract worth at least $50 million for "launch capabilities." The deal provides Lockheed Martin with money for facilities and support services needed to launch as many as four military or intelligence satellites per year on Atlas 5 rockets.

The total contract value is being kept secret because a similar deal is being negotiated with Boeing. In written statements provided Friday evening, military officials indicated that they are structuring these and future contracts to provide each launch company with about four launches per year.

The $50 million does not include the cost of actually launching the rockets. Launch fees will be set in separate contracts. Last year, Air Force officials told FLORIDA TODAY they expect to pay between $138 million and $254 million for each launch on either the Lockheed Martin Atlas 5 or Boeing Delta 4.

Future launches will be awarded on a year-by-year basis, two years in advance.

The division of launches could soon be irrelevant if the government approves the proposed merger of the Lockheed Martin and Boeing launch businesses in a 50-50 joint venture partnership that would be called United Launch Alliance.

Awaiting clearance from the Federal Trade Commission, the alliance would operate both the Lockheed Martin Atlas 5 and Boeing Delta 4 rocket fleets. The companies would share profits. Air Force officials said Friday that its adjusted rocket strategy is unrelated to the proposed merger.

The Air Force said its support of Lockheed Martin and Boeing does not shut out other potential competitors. A qualified company with a rocket capable of launching military spacecraft will be welcome to bid for future business, according to a statement issued by Col. Joe Boyle, chief engineer for the Air Force Launch and Range Safety Program Office.