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Fri, Jul 25, 2003

Bad News for Boeing

Lockheed Martin Stands to Gain

Lockheed Martin is getting all kinds of good news lately. As we report in a separate story today, their Atlas V is starting a Pluto mission in 2006.

Additionally, Thursday, Reuters reported that Air Force Undersecretary Peter Teets announced that the USAF has pulled three launches from Boeing, all due to go this Summer, as well as seven contracts that Boeing won in 1998.

The value of the transfered contracts is roughly a billion dollars.

Teets's bad news for Boeing didn't stop there. He also let it be known that, as a further result of Boeing's cheating on EELV contract bids, three of Boeing's former employees would be suspended from future government work; oh -- and so are three business units from Boeing's Integrated Defense Systems, until the company's corrected procedures are approved.

Boeing isn't about to fall on its sword yet, though; the approval for reinstatement could come in as little as two to three months' time; in the last few weeks of the year, there are typically a dozen and a half launch contracts awarded. Boeing should be back in good graces by then.

FMI: www.af.mil, www.boeing.com

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