Government wants more data on Boeing-Lockheed plan to merge booster businesses
Plans by Boeing and Lockheed Martin to combine their launch vehicle businesses have been delayed by US government requests for more information on the expected cost savings, but the deal is still expected to be completed by the end of the year.
The two companies are exchanging information on the planned United Launch Alliance (ULA) joint venture with the US Department of Defense and Federal Trade Commission, both of which must approve the deal. When it was announced in May, Boeing and Lockheed said the tie-up would save $100-150 million a year by consolidating government launch operations for their respective Delta and Atlas vehicles.
Now government officials have asked about potential savings from consolidating production and engineering for the launch vehicles, which the contractors say they had not addressed.
The plans call for launcher assembly and integration to be consolidated at Boeing’s Delta plant in Decatur, Alabama, and programme management and engineering at Lockheed’s site in Denver, Colorado.
The request for additional information on cost savings has delayed approval of ULA’s formation, which was “strongly encouraged” by the government and then-under secretary of the US Air Force for space Pete Teets, says Boeing Air Force Systems president George Muellner.
Despite press reports of waning air force support for the merger, Meullner says Boeing has “not gotten any signals like that”.
In advance of the approval for ULA, the two companies are jointly negotiating the “Buy 3” contract for the next batch of launches under the USAF’s Evolved Expendable Launch Vehicle programme.
The contract is for 23 launches, with 12 going to Lockheed’s Atlas V and 11 to Boeing’s Delta IV. The tie-up is intended to reduce the cost of continuing to operate both launch vehicles, to provide assured access to space, by eliminating duplication in infrastructure.
The 50:50 joint venture will be responsible for engineering and production of both booster families, all US government launches from California and Florida, and for supplying vehicles “at cost” to the two organisations, Boeing Launch Services and International Launch Services, that are responsible for commercial launches of the Delta and Atlas, respectively.
GRAHAM WARWICK & STEPHEN TRIMBLE/WASHINGTON DC
Source: Flight International