Lockheed Martin, Hughes Electronics and TRW are once again working with each
other, rather than against each other, in developing and deploying a major new
US military defense system. The three firms jointly won a $2.5 billion contract
to build the Pentagon’s next generation military communications satellites. In
all, the contract calls for a constellation of five next-generation
communications satellites, the first of which is expected to be launched in late
2004.
Less than two months ago, the team of Lockheed and TRW was competing against
Hughes for the contract. But Pentagon eventually agreed to a joint proposal that
offered to improve the transmission capability at half the cost than previously
forecast. The cooperation also moved up the delivery of the system by 18 months.
Earlier, the three firms also won a joint contract for the Milstar II
communications satellite project. TRW and Hughes will build the satellites at
their Redondo Beach and El Segundo facilities in California. Lockheed Martin's
space unit in Sunnyvale (Silicon Valley) will integrate the satellites and test
them.