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Pentagon restructures Lockheed satellite program

Posted on: Tuesday, 13 December 2005, 12:04 CST

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."


Source: REUTERS

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