Army Snubs 3 Southland Firms in Weapons Bidding

Three Southern California defense contractors have lost out in a multibillion-dollar competition to develop a new generation of portable anti-tank weapons for the U.S. Army.

The Army on Thursday selected the contracting team of Texas Instruments of Dallas and a Florida division of Martin Marietta to build the weapon. The contract could prove to be worth approximately $3 billion.

Ford Aerospace’s Aeronutronic division in Newport Beach had been teamed with General Dynamics’ Valley System division in Rancho Cucamonga in the competition. Another losing bidder was the team of Hughes Aircraft’s Missile Systems Group in Canoga Park and Honeywell Aerospace and Defense in Minneapolis.

“We were disappointed to lose it,” Susan Pearce, a Ford Aerospace spokeswoman, said. “It was something we were looking to to expand our business.”

Ford Aerospace has been developing the laser beam technology used in its version of the weapon for about a decade, Pearce said. About 20 people who worked exclusively on the program will be reassigned.

A Hughes spokesman called the decision “disappointing” but said the loss would have “no perceptible impact on near-term employment” in Canoga Park.

It is uncertain, however, whether the weapon--known officially as the Advanced Anti-Tank Weapon System-Medium program--will ever get built. Although the Army has given high priority to the program, some top Pentagon officials and members of Congress have questioned the effectiveness of the costly weapon.