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Boeing gets waiver from airforce { August 30 2003 }

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   http://www.washingtonpost.com/ac2/wp-dyn?pagename=article&node=&contentId=A2618-2003Aug29¬Found=true

http://www.washingtonpost.com/ac2/wp-dyn?pagename=article&node=&contentId=A2618-2003Aug29¬Found=true

Boeing Gets Waiver From Air Force


By Renae Merle
Washington Post Staff Writer
Saturday, August 30, 2003; Page E01


The Air Force awarded Boeing Co. a $56 million satellite project yesterday, waiving its suspension of the defense giant's bidding for new space business.

In July, the Air Force suspended three Boeing units from bidding on space contracts for an indefinite period because of "serious and substantial violations of federal law" during a 1998 competition with Bethesda-based Lockheed Martin Corp. The suspension took effect last month.

The Air Force did not explain the waiver, saying only that "this award required an exception to the existing suspension of three Boeing business units." The contract supports Boeing's Delta II rocket, which launches the global positioning system satellites, the statement said.

A Boeing spokesman declined to comment.

Chicago-based Boeing was suspended after an Air Force inquiry found that the company was in possession of thousands of proprietary Lockheed Martin documents during a competition to build rocket launchers for military satellites. The Air Force responded by shifting about $1 billion in business to Lockheed and suspending three Boeing units from competition for new contracts.

At the time, Peter B. Teets, undersecretary of the Air Force, said exceptions could be made "in the case of compelling need in the national interest."

The waiver was issued as Boeing is attempting to get the suspension lifted completely. In its formal response to the suspension submitted earlier this week, Boeing argued that it is operating at the highest ethical standards and pointed to an ongoing review of its practices by former senator Warren B. Rudman (R-N.H.). The Air Force had said the suspension probably will last 60 to 90 days, by far the longest sanction for a major defense contractor, industry officials said.



© 2003 The Washington Post Company



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