Story Published:
Dec 1, 2005 at 3:08 PM PST
Story Updated:
Aug 31, 2006 at 1:08 AM PST
WASHINGTON, D.C. - Boeing is facing its last chance to
win back a major slice of work on a constellation of costly spy
satellites that is late, over-budget and tinged by parochial
politics.
Satellite programs take years to develop and cost at least
several billion dollars each, making them among the most expensive
government purchases that lack public oversight.
Industry experts, congressional aides and intelligence veterans
agree on this: Boeing hurt itself by over-promising on a
multibillion-dollar plan to build the top-secret satellites that
were smaller, cheaper and more functional than its competition.
In September, the national intelligence director decided to take
the most complicated work away from Boeing, a newcomer to the
photo-reconnaissance satellite business, and give it to Lockheed
Martin Corp.
The question is whether Boeing's friends in Congress can find a
way to weaken John Negroponte's decision in legislative maneuvering
before year's end.
The stakes are high for the program known as Future Imagery
Architecture. For the companies, it means billions of dollars. For
Negroponte, it's an early test of the authority Congress gave him
in last year's intelligence overhaul law.
"It is a signature initiative for him," said John Pike, a
satellite expert and director of GlobalSecurity.org. "And he
cannot afford to lose on it. ... All these people who said Mr.
Negroponte is going to be in charge are going to look not so good
if Boeing manages to overturn him."
U.S. officials rely on photo-reconnaissance satellites to gather
visual information from space about adversarial governments and
terror groups, such as construction at suspected nuclear sites or
jihadist training camps. Classified satellites can also be used to
survey damage from hurricanes, fires or other natural disasters.
Agencies including the National Reconnaissance Office, which
builds and manages the nation's spy satellites, are eager to
replace an aging fleet of satellites whose rocket fuel supplies
can't be replenished after launch.
Yet new satellite systems are notorious for cost overruns and
schedule delays partly because, unlike most government purchases,
the bulk of the expenses come during the early, less predictable
development phase.
Defense analysts, including the Lexington Institute's Loren
Thompson, say about a half-dozen imagery satellite programs are
believed to be in operation or under development.
The Future Imagery Architecture is expected to cost tens of
billions of dollars and is at least $4 billion to $5 billion over
budget already. Experts believe the classified program will be a
number of relatively light satellites that could cover the world
with greater frequency by deploying more "birds" than earlier
programs.
The program also is intended to pull together imagery from
classified spy satellites, commercial satellites and unmanned
aerial vehicles into one network for U.S. agencies to draw on.
In this system, one type of satellite would use radar and could
collect images through clouds. Boeing is going to keep that work
and remain the lead contractor for the overall program.
But the company lost the contract for a more complicated
satellite that would take more precise pictures with visible-light
or infrared cameras. At Negroponte's direction, the National
Reconnaissance Office is negotiating with Lockheed, which will
start fresh on its own design.
Said Negroponte's spokesman Carl Kropf: "This is what the law
provides for him to do - to look across the intelligence community
and its programs, offer his recommendations and make key
decisions."
Congressional aides and industry experts say it is tough to
defend Boeing, given the magnitude of failure on the contract it
won in 1999. Yet public discussion is muted because of the highly
classified nature of satellite programs.
Boeing has a number of allies in Congress, but only California
Rep. Jane Harman, the House Intelligence Committee's top Democrat,
has publicly opposed Negroponte's decision to take the work away
from Boeing. She called it "heartbreaking."
Harman's district includes the facility where Boeing does this
satellite work. She believes there are better options that will
protect competition among U.S. aerospace companies.
"Bad management should not be rewarded," she said in an
interview. "On the other hand, what we need to keep our eye on is
gaps in capabilities - these are national security issues - and the
health of the industrial base."
Others in Congress and government have grown displeased about
the costs of satellites, especially when agencies could buy
relatively cheap information from human spies paid in cash.
Retired Army Col. Lawrence Wilkerson, who was chief of staff to
former Secretary of State Colin Powell, said that in several
decades as an intelligence consumer, he rarely got useful
information from satellite imagery. "Occasionally, you got
something good, but not nearly worth the price we were paying for
these things."
The House Intelligence Committee Chairman, Rep. Peter Hoekstra,
R-Mich., called for Negroponte to offer a plan that outlines what
the U.S. wants from satellites and its "woefully inadequate"
human intelligence. Yet lawmakers, he said, won't be a "rubber
stamp" for Negroponte's ideas.
Some tweaking of Negroponte's space plan has already begun, and
more could come next month in legislation that authorizes and funds
spy satellites.
Thompson said Lockheed has almost sealed the victory on Future
Imagery Architecture. But, he added, "I would never underestimate
Jane Harman's ability to influence events. She is very smart and a
very strong member of Congress."
Lockheed says it is ready to meet the government's needs.
In a statement, Boeing spokeswoman Marta Newhart said the
company is disappointed with the government's decision on the
satellite program. "We understand the issues and have taken
aggressive action to address them," she said.