Pentagon restructures Lockheed satellite program

WASHINGTON (Reuters) – Pentagon acquisitions chief Kenneth
Krieg has decided to continue a multibillion Lockheed Martin
Corp. missile-warning satellite program after a restructuring
that will cut two satellites from the expected program,
according to a copy of Krieg’s letter to Congress.

Krieg told Congress the Space Based Infrared System (SBIRS)
High program was “essential to the national security,” there
were no cheaper alternatives, and new cost estimates for the
program — which has been over budget for years — were
reasonable. A copy of the letter was obtained by Reuters.

But he said he would not award a contract for the one
remaining high-earth orbit satellite that will still be
procured until he was confident about the performance of the
first developmental high-earth orbit satellite. He also vowed
to conducted “enhanced oversight of the program to ensure that
cost and management are closely monitored.”