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Wed, Oct 20, 2004

Lockheed Asks USAF To Cancel Boeing Contracts

Another Day, Another Scandal

If Lockheed had its way, the Air Force would cancel more than $6 billion worth of Boeing contracts. But Lockheed probably won't have its way.

Lockheed Martin Monday protested at least four contracts awarded Boeing as the Chicago-based company's ethics scandal appeared to widen. Former Air Force procurement officer Darleen Druyun, already sentenced to nine months in prison for negotiating a job with Boeing while negotiating the ill-fated 767 tanker deal, is now the subject of further investigations. This, after Druyun admitted she awarded a contract for upgrading C-130 software to Boeing because she was grateful that the company had hired her daughter and her daughter's fiance.

"The integrity of the procurement process demands that the affected contract awards must be overturned, that contracts must be terminated for default and that Boeing must be disqualified from any re-competition of such contracts," wrote Lockheed attorney Marcia Madsen in letter to the Air Force. The letter was dated October 12th and quoted by the Seattle Post-Intelligencer.

Boeing spokesman Doug Kennett admitted Darleen Druyun (above) had come back to haunt the aerospace giant. "The Air Force and the Department of Defense have begun a review of a number of Air Force contracts to see if there is any corroboration to the surprising statements made public at Ms. Druyun's sentencing," he said. "We have offered any and all cooperation to this endeavor and look forward to its conclusion. We see no reason for anyone to prejudge this process."

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

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